Poor retail figures 'will not be enough for interest rate cuts'
The Reserve Bank of Australia (RBA) is unlikely to sanction further cuts to interest rates based on retail figures alone, a leading economist has claimed.
According to the Australian Bureau of Statistics, retail activity fell by 0.2 per cent in April. This was quite a surprise, as most experts had been predicting growth of 0.2 per cent.
Despite this, HSBC's Paul Bloxham told the Australian Associated Press that the RBA will be taking other factors into account before deciding if another rate reduction is required.
He said the poor retail figures were offset by growth in the construction sector during the same month.
The RBA lowered the official cash rate by 50 points at the start of May and a lot of Aussies are expecting more readjustments when the board meet again next week.
"Overall we think local conditions are unlikely to motivate the RBA to cut next week but of course the focus is all on global conditions at the moment," Mr Bloxham told the news provider.
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