Cash Rate Unchanged – Economic Update

At its meeting today, the Board decided to leave the cash rate unchanged at 1.50 per cent.

the full statement can be found here, or you can read the below points.

Summary points

• The global Economy has grown and unemployment figures have decreased. All Australian States have recorded increased levels of employment. The current unemployment rate in Australia sits around 5.5%
• Long term Bond yields have risen
• equity markets are very volatile and this is largely due to uncertainty in trade policy (Trump starting a trade war with China and other countries)
• The Australian economy grew by 2.4 per cent over 2017. The Bank’s central forecast remains for faster growth in 2018
• Household income has been growing slowly, yet wage growth remains low and debt levels are high
• Inflation remains low and CPI below 2%. This trend is expected to continue in the short term but forecasts are slightly above 2% towards the end of 2018
• The housing markets in Sydney and Melbourne have slowed, while some areas in eastern cities have seen falling prices. Tighter borrowing restrictions and increased supply of apartments is most likely the reason for the slow down in prices.

If you would like to discuss any of these points with me, please don’t hesitate to get in touch or you may book an appointment by clicking here.

Cheers,

Nick Lucey BAppEc (financial planning)
Director | Financial Adviser

Nest Advisory Group