Internet Banking

News

Weekly Economic Commentary

Weekly Economic Commentary

Categories: General, General

A lot of the economic data released last week pointed to a slowdown in momentum with consumer confidence down, ANZ Job Ads flat and most significantly, building approvals plunging a massive 9% in November. The news wasn’t all bad though, with another healthy trade surplus in November, job vacancies up and retail sales up a solid 0.4%.

The overriding influence on markets at the moment however is the optimism that the talks underway in Beijing will bear fruit in terms of progress toward a US/China trade deal. Many traders were back from holidays last week for the first full week of 2019 to digest all that has happened over the holiday period but generally came back on a positive note.

Financial markets currently remain convinced there is a strong possibility that the RBA will cut interest rates later this year. While the majority of economists are sticking to a view that the next move by the RBA is up, the opposite camp is gaining some credibility.

My view remains that rather than cutting interest rates, the RBA will just leave the cash rate unchanged for longer.

View the full newsletter (PDF, 356KB)

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 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.