Australian companies reported their half-year financial results during the quarter, exceeding expectations despite global economic headwinds.
Companies leveraged to housing and the consumer market fared best, reinforcing the moderating concerns associated with the property market and the view that share market weakness can be mainly attributed to global macro-economic concerns.
The Reserve Bank of Australia (RBA) kept the main interest rate unchanged throughout the quarter at a historical low of 2 per cent, but in early May, they reduced the rate to 1.75 per cent. The RBA’s themes remain unchanged with a focus on the relatively strong Australian dollar, weak business investment and poor business conditions. The RBA noted that improved labour market conditions were as a result of the expansion in the
The RBA noted that improved labour market conditions were as a result of the expansion in the non- mining parts of the economy, however, monetary policy would need to be accommodative to support the economy that was experiencing weaker growth.