WEEKEND ECONOMIST: Wary of the consumer

The RBA's decision to cut rates this month was the right one, and while the March economic data showed brief burst of consumer spending this will likely be unsustainable, meaning a further 75bps of cuts will be needed.

This week saw an as-expected RBA decision (a 25 basis point cut to 3.50 per cent), and two above-expectations data prints: Q1 GDP and May jobs. The expectations-beating data has seen market pricing pared back to be more in line with our rate expectations, which remain unchanged.

{{content.question}}

SMS Code Sent…

Hi {{ user.FirstName }}

Looks like you've already taken a free trial

Please enter your payment details

We have sent you a code via SMS to {{user.DayPhone}}

please enter this code below to activate your membership

If you didn't receive SMS code please

Looks you are already a member. Please enter your password to proceed

Please untick this box when using a public or shared device


Verify your mobile number

Please sign up for full access

Updating information

Please wait ...

  • Mastercard
  • Visa

Related Articles