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Weekly Economic Commentary

Weekly Economic Commentary

Categories: General, Commodities

Negative press in response to the 2014/15 Federal Budget continued last week as consumer sentiment fell to its lowest level since August 2011, just before the RBA’s most recent easing cycle began. The fragile consumer confidence poses a risk to household spending, especially on goods and services, and retail sales data over the next few months will be watched closely as it should provide important information as to how the Budget has impacted household spending.

The Australian Dollar was the big mover last week, falling 1½ cents, to a two-month low and coinciding with a fall in the spot price of iron ore.

Last week’s Reserve Bank of Australia Board Minutes pulled few surprises and confirmed the RBA’s neutral policy stance – so rates look to be on hold for some time yet.

Source: Rural Bank

 

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