Market WATCh Weekly 5 August 2022

Market WATCh Weekly 5 August 2022

August 5, 2022

As expected, the RBA increased its interest rates by 50bps, taking the cash rate target to 1.85%. The central bank has also revised its inflation projection path upwards, but downgraded its GDP growth forecasts. Aussie retail sales volumes saw another solid increase in Q2, despite the strong growth in prices. Dwelling approvals and new home loans declined in June. The trade surplus widened to a new record high in June, with iron ore exports climbing further. Abroad, the US ISM PMIs for July were mixed, while the Chinese PMIs signalled stagnation or even contraction in manufacturing, but activity growth in services remained strong.

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