The Economic Update – June 2013
The Reserve Bank of Australia (RBA) cut rates at the May meeting using “some of [the] scope” to support demand after a lower CPI and a sustained high AUD. For the month as a whole the data flow was mixed. While employment was stronger than expected, retail sales, housing approvals and credit were soft, indicating a limited flow through to date of the 2% drop in rates by the RBA over the past couple of years.