Time to Pause – Economic Update April 2023

As the month of March commenced, a crisis was emerging within US regional banks that threatened to spiral out of control. US regulators were quick to step in and did so in decisive manner. It was not enough to stop markets testing other banks that have showed some weakness and this resulted in the swift downfall of Credit Suisse. Much of the issues in the banking sector seem to have been quelled for now. The RBA may have taken some of the US regional banking issues on board when setting interest rate policy for the month when it decided to pause after 10 consecutive interest rate increases. This decision was probably made easier by OPEC+’s decision to cut production by over 1m barrels per day from 1 May. The outlook indicates inflation is falling and that GDP growth will slow throughout the year with some economies likely to have a harder landing than others.

Follow the link to read the full article. 230411_NewsFeed_RoystonCapital.pdf (426 downloads )