Morgans Holdings

Morgans, Australia's largest full-service retail stockbroking and wealth management firm, managing 240, 000+ client accounts with offices nationwide.

Superannuation consultant, stock broker, financial consultant

The RBA's decision for a 25bps cut reflects a view that inflation is sustainably moving back towards the Bank's 2-3% range. Three consecutive declines in quarterly core CPI from 4. 0% to 3. 2% in the December quarter afford some space for monetary easing.
In the, the Board also highlighted some weakness in the demand side of the economy, with consumer and business sentiment subdued. Noting that "there has also been continued subdued growth in private demand and wage pressures have eased".
The Board was careful to point out that upside risk remains, suggesting that the labour market may be tighter than previously thought. So, while today’s policy decision recognises the progress on inflation, the Board remains cautious on prospects for further policy easing.
While Australia's economic stability presents minimal recession risk, the RBA must balance stimulus against potential overheating concerns from ongoing fiscal spending, as our economist Michael Knox points out in his.
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