In Australia, the outlook remains mixed, labour market and confidence metrics have remained solid early in the year and this is expected to continue. Yet other activity indicators continue to suggest a more modest pick up in growth may be expected with limited price pressures. Show More

The most important question for 2018 in an Australian context will be whether the economy is strong enough for the Reserve Bank of Australia (RBA) to start removing policy accommodation. That is to say, to have confidently begun a tightening cycle. This is the expectation of most market economists and... Show More

Trends emerging in the household sector are becoming concerning, despite solid employment growth. The absence of an acceleration of wages growth, weak overall income growth and higher costs of living has seen consumer confidence remain subdued. Show More

The Fed is clearly well out in front in reducing monetary policy stimulus. Its stance was demonstrated again in June as the FOMC (Federal Open Market Committee) increased the Federal Funds Rate by 25bp. As a result, the target rate rose to 1.00- 1.25%, while the Committee noted that the... Show More

US ten-year bond yields have fallen approximately 25bp since March and are at around 2.1%. Australian government bond yields have likewise fallen by around 60bp to 2.4%, after briefly looking to breach 3% back in February. However, what is more notable is the narrowing of the spread between the two,... Show More