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Weekly Economic Commentary

Weekly Economic Commentary

Categories: General, Commodities

As expected, the Reserve Bank of Australia Board decided to again leave the cash rate unchanged at 2.50% for the eighth straight month at its April meeting last week. The Governor's statement accompanying the decision provided us with no new information, retaining the key phrase that, "on present indications, the most prudent course is likely to be a period of stability in interest rates".

The remainder of the statement was largely unchanged from that following the previous (March) meeting, with tweaks suggesting slightly more confidence that domestic conditions are evolving in line with expectations, but noting that China's growth may have slowed, as well as reduced assistance from the Australian Dollar which has moved higher over the past few months.

A lower cash rate is highly unlikely from here but there is also little evidence that the RBA is thinking that they need to raise the cash rate in the near future either.

Rural Bank’s Weekly Economic Commentary will not be distributed from Monday 14 April until Friday 9 May due to annual leave.

We look forward to talking to you again on Monday 12 May.



Disclaimer: Whilst all care has been taken in compiling the information, the information should not be relied upon as substitute for professional advice where necessary. Rural Bank Limited accepts no responsibility for the accuracy, completeness or timeliness of the information and disclaims all liability in relation to any loss or damage suffered by the use of or reliance upon any information contained herein or in any attachment or annexure hereto by any person. Rural Bank Limited ABN 74 083 938 416 AFSL 238042.