(06 MARCH 2018)DAILY MARKET BRIEF 2:Reserve Bank of Australia monetary policy unchanged

The Reserve Bank of Australia held interest rates this morning at 1.50%, unchanged since August 2016, and the 17th meeting at this level. Weak economic data suggest no interest hikes in 2018. Unemployment is approaching a full-employment minimum of 5.0%, yet wage growth is low and neutralized by inflation. December’s trade balance drastically decreased, from close-to-zero to AUD -1’358 billion, its worst performance since October 2016. Equities were heading higher, the S&P/ASX 200 up 1.14% at 5’962 while Australian 2-year and 10-year Treasury yields remain at 2% and 2.82%.

By Vincent Mivelaz