{"id":8300,"date":"2024-06-18T09:24:09","date_gmt":"2024-06-18T08:24:09","guid":{"rendered":"https:\/\/hamiltoncourtfx.com\/?p=8236"},"modified":"2024-06-18T09:24:09","modified_gmt":"2024-06-18T08:24:09","slug":"rba-hold-rates-for-a-fifth-consecutive-time","status":"publish","type":"post","link":"https:\/\/hamiltoncourtfx.com\/es\/rba-hold-rates-for-a-fifth-consecutive-time\/","title":{"rendered":"RBA Hold Rates for a Fifth Consecutive Time"},"content":{"rendered":"
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Travel Tuesday: Ethiopia<\/strong><\/h5>\n
Ethiopia is widely considered the birthplace of coffee. Legend tells of Kaldi, a goat herder, who first noticed his goats’ increased energy after consuming berries from a specific tree. This discovery sparked the exploration of coffee beans and eventually led to the creation of the coffee drink we enjoy today. Ethiopia remains a major producer of coffee, and its coffee ceremony is a cherished national tradition.<\/h5>\n
GDP <\/strong>156.1 billion<\/h5>\n
Biggest Export<\/strong> Coffee, Gold, Flowers, Oilseeds<\/h5>\n
Biggest Trading Partners<\/strong> UAE, USA, Germany, Saudi Arabia, and Somalia<\/h5>\n
Political System<\/strong> Federal Parliamentary Republic<\/h5>\n
National Animal<\/strong> Lion<\/h5>\n
Next Election<\/strong> 26 June<\/h5>\n<\/div>\n <\/div>\n <\/div>\n <\/div>\n<\/div>\n\n\n
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RBA Hold Rates for a Fifth Consecutive Time<\/h2>\n <\/div>\n
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This morning the Reserve Bank of Australia kept its benchmark rate unchanged at 4.35%, meeting market expectations. This marked the fifth consecutive hold as inflation continues to remain above the central banks 2-3% target, having subsided to 3.6% over the first quarter of 2024.<\/p>\n

Slowing growth and a cooling labour market however mean that the RBA continue to navigate across a precarious tightrope in setting monetary policy.<\/p>\n

Here, the summary record of the meeting identified that \u201cThe economic outlook remains uncertain and recent data have demonstrated that the process of returning inflation to target is unlikely to be smooth\u201d.<\/p>\n

It therefore concluded that \u201cthe path of interest rates that will best ensure that inflation returns to target in a reasonable timeframe remains uncertain and the Board is not ruling anything in or out\u201d.<\/p>\n <\/div>\n <\/div>\n <\/div>\n<\/div>\n\n

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Wage Growth Figures Across the Continent<\/h2>\n <\/div>\n
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Wage growth in the eurozone rose at its fastest pace since Q4 2022, according to the yesterday\u2019s data release. In the first three months of the year, wages grew at an average of 5.3% on an annualised basis. This came as wages grew 5% across the services sector, 5.2% across the construction sector and 4.8% across industry,<\/p>\n

When looking at individual member states, wages appreciated 6.3% in Germany, while Spain\u2019s rose 4.5%. Elsewhere, Italy\u2019s rose 3.3%, while France saw less than half that of Germany which rose 2.6%.<\/p>\n

When taken alongside a wider set of French labour data, which showed unemployment rise from 7.1% in Q1 2023 to 7.5% in Q1 2024, there is increasing evidence that the French labour market is cooling, as France heads to the polls. (Macron interestingly has set an objective of delivering full employment by the end of his presidential term in 2027).<\/p>\n

When looking at averages across the EU as a whole, wages grew marginally higher at 5.8%. This came as wages soared 16.4% in Romania, 15.8% in Bulgaria, 15.3% in Croatia, 14.1% in Poland and 13.7% in Hungary.<\/p>\n <\/div>\n <\/div>\n <\/div>\n<\/div>\n\n

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Oil Prices Rise<\/h2>\n <\/div>\n
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Oil prices edged higher during the course of yesterday\u2019s session as they traded close to the highest level since April.<\/p>\n

Here, WTI crude futures appreciated above $80 dpb on Monday having risen around 2% over the day.<\/p>\n

This rise comes as supply-side concerns remain given Saudi Arabia and Russia\u2019s commitment to production cuts as OPEC+ looks to support prices. On the demand-side, growth also appears to look strong though the International Energy Agency warned on last week that there could be spare capacity of eight million barrels a day by 2030. This comes as companies continue to invest into increasing production around the world, potentially limiting the extent to which OPEC+ can control production.<\/p>\n

For more on this topic, follow the link to the FT\u00a0here.<\/a><\/p>\n <\/div>\n <\/div>\n <\/div>\n<\/div>\n\n

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Reform Announce ‘Contract’<\/h2>\n <\/div>\n
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Nigel Farage was in Wales to announce his party\u2019s \u2018contract with the public\u2019 yesterday \u2013 as apparently the word \u2018manifesto\u2019 is synonymous with \u2019lies\u2019. The contract would translate into a significantly smaller government and welfare state, with the exception of the NHS, where they\u2019re proposing to reduce waiting lists to zero and spend a further \u00a317bn a year on reforming the system. Other headlines include getting immigration to net-zero, scrapping all climate related net-zero pledges and getting defence spending to 3% within six years.<\/p>\n

They also think that they\u2019ll be able to save \u00a35 in every \u00a3100 spent by the government, saving \u00a350bn a year, whilst also not repaying interest on QE debt created by the Bank of England and lent to the government.<\/p>\n

The latter would surely see the credit rating of the government shot to bits if we decided not to pay interest back to an independent creditor? Or at least, that\u2019s probably how the markets would view it and act accordingly.<\/p>\n

The announcement looks far more like an ode to the disenfranchised that it looks like a serious government policy. Of course, when you\u2019ve got no chance of taking power then there\u2019s perhaps a greater tendency to say what you want, with the only risk being to other parties that have to waste time explaining why this simply isn\u2019t possible.<\/p>\n <\/div>\n <\/div>\n <\/div>\n<\/div>","protected":false},"excerpt":{"rendered":"

Travel Tuesday, benchmark rate remains unchanged by RBA, rising wage growth across the continent, rising oil prices, and Farage announces Reform ‘contract’.<\/p>","protected":false},"author":15,"featured_media":2144,"comment_status":"closed","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"footnotes":""},"categories":[1],"tags":[],"rp-language":[16],"class_list":["post-8300","post","type-post","status-publish","format-standard","has-post-thumbnail","hentry","category-morning-updates","rp-language-en_gb"],"_links":{"self":[{"href":"https:\/\/hamiltoncourtfx.com\/es\/wp-json\/wp\/v2\/posts\/8300","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/hamiltoncourtfx.com\/es\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/hamiltoncourtfx.com\/es\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/hamiltoncourtfx.com\/es\/wp-json\/wp\/v2\/users\/15"}],"replies":[{"embeddable":true,"href":"https:\/\/hamiltoncourtfx.com\/es\/wp-json\/wp\/v2\/comments?post=8300"}],"version-history":[{"count":0,"href":"https:\/\/hamiltoncourtfx.com\/es\/wp-json\/wp\/v2\/posts\/8300\/revisions"}],"wp:featuredmedia":[{"embeddable":true,"href":"https:\/\/hamiltoncourtfx.com\/es\/wp-json\/wp\/v2\/media\/2144"}],"wp:attachment":[{"href":"https:\/\/hamiltoncourtfx.com\/es\/wp-json\/wp\/v2\/media?parent=8300"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/hamiltoncourtfx.com\/es\/wp-json\/wp\/v2\/categories?post=8300"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/hamiltoncourtfx.com\/es\/wp-json\/wp\/v2\/tags?post=8300"},{"taxonomy":"rp-language","embeddable":true,"href":"https:\/\/hamiltoncourtfx.com\/es\/wp-json\/wp\/v2\/rp-language?post=8300"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}