Monday Market Madness 12th March 2018

Last week the Reserve Bank left the cash rate at 1.50% unchanged since August 2016. In the Board minutes, weak consumer inflation and wage inflation were cited as ongoing concerns as inflation continues to track below the Bank’s core target of 2%-3%. Some market observers have fixated on the reference to leading indicators as a sign that wage inflation may be reappearing. However, the Board was content with leaving policy settings unchanged and its Statement reflected this with minimal changes from the February 6 session.