US government agreed to a new budget deal that will lift spending by $300 billion over the next two years. Market is anticipating 3 to 4 US interest rate rises of 0.25% each this year. The RBA left interest rates on hold for the 18th consecutive month at record low of 1.50% and the minutes from that meeting suggest that monetary policy will only be adjusted when wage and price pressures return. In short, official interest rates are on hold! Australia’s jobs data (Thursday) and RBA Governor Philip Lowe’s Half-Yearly testimony to Parliament on Friday are this week’s economic calendar highlights.
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