wrapper

RBA says it has room for further rate cut

Tuesday, Mar 15 2016
The Reserve Bank has put a positive spin on the local jobs outlook, but says another rate cut could be on the cards because of weak inflation. Economists are divided about whether the central bank will lower its cash rate from a record low 2.0 per cent, with some tipping two cuts in 2016 while others expect the RBA to sit tight for the rest of the year.
In the minutes of the central bank's March board meeting, released on Tuesday, members acknowledged that employment growth stalled in January following a surge in late 2015, while unemployment climbed back up to six per cent. "Nevertheless, conditions in the labour market had clearly improved since early 2015," the RBA said.
 
"Leading indicators of employment had increased further and were consistent with employment growth in the months ahead." But the central bank said low inflation will allow it to cut the cash rate if jobs growth flattens out or the global economy goes into meltdown. "Continued low inflation would provide scope to ease policy further, should that be appropriate to lend support to demand," the minutes said.
 
Aussie is currently being traded around 0.75 area. Pair is likely to find support around 0.7450 handle and resistance above 0.7550 level. Later today, in the US session, Retail Sales, PPI and Empire State Manufacturing Index figures are scheduled for a release.
More in this category: « Steadier Monday's session ahead of quite volatile week Brexit supporters more motivated to vote »

Latest from Editor

About Us

Forex Web News is part of Rolling Capital Network providing financial consulting.

Within the Forex Web News we provide our readers with expert and timely technical analyses, fundamental analyses and news; with one aim – for our readers to make best possible financial decisions.

Forex Web News desks and analysis department follow the international markets closely and create high quality proprietary content on a both daily and weekly basis.

.

All our analysts have several years of trading and analysis experience. The Forex Web News analysis team creates daily and weekly analyses and offer forecasts regarding where they believe the markets are heading. Our readers are provided with data displayed both in texts and on graphs, providing them the fullest understanding of what is happening in the market place.

We are constantly growing our news desks and our analysis departments as we strive to broaden the content we provide to visitors of the Forex Web News.

Disclaimer

Rolling-capital.com – The company, employees, subsidiaries and associates, are not liable nor shall they be held liable jointly or severally for any loss or damage as a result of reliance on the information provided on this website. The data contained in this website is not necessarily provided in real-time nor is it necessarily accurate. All prices herein are provided by market makers and not by exchanges. As such prices may not be accurate and they may differ from the actual market price. rolling-capital.com bears no responsibility for any trading losses you might incur as a result of using any data within the Forex Web News.