RBA will be eyeing global weakness

China, too, surprised with below-forecast manufacturing data on Monday, which was largely shrugged off by financial markets in Australia but could move onto the RBA‘s radar. "[Monday’s] China data indicated the world’s second largest economy is facing pressure from both weak domestic demand, due to weak real estate activity and business investment, and the absence of growth in global trade, from a weak Europe and Japan,"  Perpetual Investments’ head of investment market research Matt Sherwood said in a note.

With inflation around the mid-range of the RBA‘s 2 per cent to 3 per cent target band, bank lending healthy but not overextended and economic growth just below what is needed to generate employment, the RBA statement accompanying the rate decision is likely to focus on global conditions, the slow rate of non-mining investment and perhaps the strength of the Australian dollar.

Read more here: SMH


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