The RBA decided to leave the cash rate at 7.25%.
The Dow fell 88 points last night as the Yahoo deal fell over, oil hit US$120, and doubt was raised about BA’s bid for Countrywide.
TD Securities is no longer confident the RBA will remain on hold tomorrow following the release of the TD-MI inflation gauge result for April.
April’s CBA-AiG PSI Index figures show rising interest rates and fuel prices are beginning to bite, most services sectors recording a downturn from the previous month.
Will Australia get another rate rise on Tuesday?
Retail sales rose 0.5% but the gain was driven solely by higher food prices as economists note consumers are cutting back on more discretionary spending.
Markets were confused and disappointed last night as a 25 point cut was accompanied by a non-committal statement. A strong rally evaporated.
March credit data for the Australian economy shows a trending down in the level of economic activity as the RBA’s recent rate hikes begin to bite on spending patterns.
Weak economic data offset reasonable earnings reports ahead of tonight’s Fed decision.
The BoE will provide a huge liquidity facility to troubled UK banks under a veil of secrecy.