While many Australians had the opportunity to enjoy two consecutive long weekends in April, as we move into May the focus is now on the federal election.
The month of April was marked by economic uncertainty and global trade tensions that drove market declines and volatility. These events are anticipated to influence the RBA’s cash rate decisions, as will the recent decline in core inflation to within the target range.
Australian shares slumped in early April but recovered with the ASX 200 up 2.5% by month’s end. Nonetheless, the index is down nearly 1.3% since the start of the year and may fall further according to some commentators. In the United States, the S&P500 regained strength after falling to its lowest level in a year.
Unemployment increased slightly in the latest figures, up by 4.1% and consumer sentiment declined 6% in April, revealing consumer unease about developments in Australia and abroad associated with US tariff announcements.
The International Monetary Fund (IMF) delivered sombre news for Australia, predicting lower growth than forecast earlier this year. Despite the slowdown, the IMF says global growth remains “well above” recession levels.
At its latest meeting, the Reserve Bank Board announced it was reducing the cash rate to 3.85 per cent, down from 4.10 per cent.
Please click here to view the Statement by Michele Bullock, Governor: Monetary Policy Decision.
With the official rate change, we’re watching closely what the banks do with their rates, as some of Australia’s biggest lenders may make changes to their rates.
You will be notified directly by your bank if and when they change their interest rate.
Please get in touch if you would like to discuss recent rate movements or if you would like to review your finance options.
