A tariff reprieve, but a weaker starting point
Insight
March 21, 2016
Australian Markets Weekly – 21 March 2016
Labour market suggests RBA on hold but keep an eye on inflation expectations Markets again moving around sharply with a less aggressive Fed (two rate hikes now expected in 2016 versus four previously) seeing the US$ broadly weaker and $A stronger. Australian labour market data show slower trend employment growth in recent months, though some […]
Labour market suggests RBA on hold but keep an eye on inflation expectations
- Markets again moving around sharply with a less aggressive Fed (two rate hikes now expected in 2016 versus four previously) seeing the US$ broadly weaker and $A stronger.
- Australian labour market data show slower trend employment growth in recent months, though some of this likely reflects a payback from previously overstated strength. The unemployment rate however was back down to cycle lows of 5.8% driven by trend improvement in NSW, QLD and Victoria but continued deterioration in WA.
- While the RBA is clearly focused on the labour market and global developments, recent communications – especially in the context of a number of recent global moves – highlight that inflationary expectations also need to be watched – especially if actual inflation undershoots. The RBA slightly changed its description of inflation from “consistent with” to “close to” target at its February interest rate decision.
For full analysis, download report:
For further FX, Interest rate and Commodities information visit nab.com.au/nabfinancialmarkets
