Internet Banking


Weekly Economic Commentary

Weekly Economic Commentary

Categories: General, General

The UK became the first country to file for divorce from the European Union last week with UK Prime Minister Theresa May formally triggered Article 50 of the Lisbon treaty, beginning the country's two-year negotiation process to exit the European Union. Being the first, many are expecting two years of uncertain negotiations that will test the unity of the European Union and shape the future of Britain’s $3.4 trillion economy, the world’s fifth largest, and determine whether London can keep its place as one of the top two global financial centres.
EU leaders say they do not want to punish Britain but with nationalist, anti-EU parties on the rise across Europe, they cannot afford to give London too-generous divorce settlement terms that might encourage other members to consider breaking away.

The RBA holds its regular monthly board meeting this Tuesday with a no change to monetary policy almost a unanimous view among analysts and economists. The current futures market (Overnight Index Swaps) has squeezed out any chance of a rate cut or hike in the short term (this year) but has a higher cash rate priced in in starting in the first quarter of 2018 (refer chart below).

RBA cash rate

View the full newsletter (PDF, 187KB)

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