Weekly Impressions

RBA communications dominated financial market developments in Australia over the past week. Mr Glenn Stevens gave the clearest indication that the RBA has adopted an easing bias, flagging that 'were a change to monetary policy to be required in the near term, it would almost certainly be an easing, not a tightening.' Mr Stevens also suggests that concerns around the employment consequences of rising automation are overblown. The rise of the robots and the changing dynamic of our leisure time will give rise to occupations in the future that are unimaginable today. Evidente also discusses the growing risks that the few stocks offering strong growth prospects – including Domino’s Pizza - become over-priced in an environment where the aggregate supply of growth is low. (VIEW LINK)