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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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Source: www.ruralbank.com.au

 

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