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Weekly Economic Commentary

Weekly Economic Commentary

Categories: General, General

The RBA provided no surprises with its decision to retain the cash rate at 1.5% last week. There were also no material changes in the brief statement accompanying the decision, which included a repeat of the forecast that “Further progress in reducing unemployment and having inflation return to target is expected, although this progress is likely to be gradual.”

While the US-China trade dispute is set to escalate, with US tariffs on $34bn of Chinese imports beginning midnight last Friday (Washington time) and China expected to immediately retaliate in kind, market response has been mixed with many now seeing any impact already priced in, but what happens next will be important. There are a further $16bn of tariffs to come shortly but any rumour of a second tariff list of $200bn worth of tariffs and possible retaliation by China is just that and will be the key for market sentiment in the near term.

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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