Author: Hayden Carswell
The Reserve Bank of Australia’s Monetary Policy Statement released on Friday revised both GDP and inflation forecasts lower but unemployment unchanged. The labour market is key to any changes in the rate outlook. Keep an eye out Wednesday for the Australian wage price index.
Over the weekend China and US trade tensions looks to bring a little volatility and weaker sentiment for the week. The US raised tariff rates on US200bn of Chinese imports to 25% up from 10%. China has warned it will be forced to retaliate with “necessary countermeasures” and will never concede on “issues of Principal”.
The ECB is expecting stronger growth in the latter half of 2019, negative interest rates have not been discussed. We have seen the AUD continue to drift to the lower end of its recent range.
The UK is still trying to find a Brexit compromise and May has offered to quit if lawmakers accept her deal after opening cross party talks. There are still deep divisions and each seem to be struggling and avoid the administration falling apart.
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