Australian Markets Weekly – NAB survey and employment data suggest little pressure for near-term RBA rate cut

The latest NAB business survey and labour market data accord well with the RBA’s policy stance – low inflation provides ample scope to ease monetary policy further should that be necessary to support the economy, though activity and labour market data do not suggest that such a move is necessary

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Highlights:

  • The latest NAB business survey and labour market data accord well with the RBA’s policy stance – low inflation provides ample scope to ease monetary policy further should that be necessary to support the economy, though activity and labour market data do not suggest that such a move is necessary.
  • Capacity utilization leads both interest rates and unemployment by around six months and suggests the unemployment rate should continue to fall.
  • A quiet week on the Australian events front, with the RBA Minutes (Tues 11.30am) and a speech by the RBA Governor on Tuesday night in NY (11.30pm Australian time) the key events. NAB also releases its latest Residential Property Survey and Quarterly Business Survey – the latter provides more information on capital expenditure plans.

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