Australia 10-Year Yield Falls After RBA Minutes
Australia's 10-year government bond yield declined to 4.31% following the release of the Reserve Bank of Australia's (RBA) meeting minutes. According to the RBA, first-quarter data indicates that the trimmed mean inflation has decreased to below 3%, alongside signs of enhanced consumer demand. Despite this, the RBA highlighted ongoing economic and inflationary risks, warning against hastily easing policies. Although the labor market continues to be tight, a deceleration in wage growth is possible. The board considers the May meeting pivotal for policy reassessment but notes it is premature to predict the next interest rate adjustment. Amidst global uncertainties, particularly relating to U.S. tariffs, the risks to economic growth have become skewed to the downside. The markets are currently factoring in a potential 25-basis point rate cut in May and forecast approximately 120 basis points of easing over the course of the year. Investors await upcoming employment data to further evaluate labor market conditions.
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