Over the past week Australian shares rose 0.7% while small company shares fell 0.9%. Shares in developed countries fell 0.7% with the US market down 0.2%. Shares in emerging markets fell 1%. The Australian dollar slipped 1.4% lower to 73.02 US cents. The Australian 10-year bond yield fell to 2.59%, with the US 10-year bond yield falling to 2.87%. The oil price fell by 1.3% to 67.63 US dollars per barrel.
The RBA has once again left the official cash rate unchanged at 1.5%. The statement by RBA Governor Phillip Lowe provides a summary of their views behind the decision. The main themes included:
All these points are broadly consistent with our core economic scenario. The economic outlook and associated risks are periodically reviewed by our Economics Committee.
David Bell | Chief Investment Officer
Past performance isn't necessarily an indicator of future performance. Data sourced from Bloomberg and Reserve Bank of Australia.
Data sourced from Bloomberg and Reserve Bank of Australia.