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Weekly Economic Commentary

Weekly Economic Commentary

Categories: General, General

The RBA has retained a tentative but “glass half full” view on financial conditions and the economy. It’s not surprising that the RBA continues to indicate that the next move in rates is more likely to be up than down even though there is no strong case for an adjustment to monetary policy any time soon.

If the RBA’s central case for economic growth and inflation is correct, the first RBA tightening is unlikely to be until around mid-2019. However, with the prospect of more out of cycle rate rises and banks doing the work for the RBA, we could see the RBA stepping back from its tightening bias to a more neutral rates bias in the near term and deferring the first rate hike even further.

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Source: Rural Bank


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 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 – A Division of Bendigo and Adelaide Bank Limited ABN 11 068 049 178 AFSL 237879