Markets Remain Calm After RBA Rate Decision
The Reserve Bank of Australia (RBA) has decided to keep the level of the key interest rate unchanged, at 1.50%. The immediate market reaction to the announcement was muted. The Bank’s growth forecast for the economy remains unchanged, seeing GDP growth averaging slightly more than 3% in 2018 and 2019 while inflation is expected to trend higher in 2019 and 2020.
Germany’s trade balance in June showed the surplus narrowing from EUR 20.3 billion in May to EUR 19.3 billion. That’s the smallest surplus in four months. On an annual basis, exports rose by 7.8%, as opposed to a 1.3% drop in May. At the same time, imports grew at a faster rate of 10.2% after an increase of 0.9% in May.
The Destatis also reported, that German industrial production fell by 0.9% in June compared to the previous month, having replaced growth by 2.4% in May. It was expected that the volume of production will decrease by 0.5%.