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Sentiment dips as economy concerns outweigh policy boost
This is a disappointing result given the cut in official interest rates this month and suggests deepening concerns about the economy have outweighed the initial boost from lower rates. Indeed, the Reserve Bank’s move was widely anticipated and may well have ‘franked’ these concerns which would have solidified further following the disappointing national accounts figures released a day later. The March quarter GDP update showed growth slowing to just 1.8% at the start of the year, the slowest pace since the GFC in 2009 and a full percentage well below ‘trend’ of 2.75%. Moves in the component indexes support ... (full story)