Following a raft of economic data that has come out recently I felt it was important to reflect on this data. It is obvious that the Reserve Bank is currently in a very tough predicament.
While much of the data is proving to be quite negative and providing a clear case for interest rate cuts, every now and then other pieces of data highlight that perhaps things aren’t so bad. Most notable of these data releases was the labour force data. Despite most economists expecting an increase to the unemployment rate, it remained at 5.2% and the participation rate actually increased.