Weekly Updates

Abroad, US President Donald Trump has temporarily exempted electronics from the tariffs on China and hinted that he may pause 25% sectoral tariffs on cars and car parts. However, he also signalled that sectoral tariffs on semiconductors and pharmaceuticals may be coming, while threating China with a 245% tariff rate on some goods and banning sales of some chips in China by US companies.

Abroad, US President Donald Trump delayed implementation of ‘reciprocal’ tariffs above 10% for all countries except China, which saw a hike to 125% and then 145%. This came after retaliatory measures from China to the original April 2 tariffs. US CPI unexpectedly fell in March ahead of the latest tariff round.

In Australia, the RBA left the cash rate unchanged on Tuesday, as expected, but remained cautious about monetary policy easing despite intensifying rate cut expectations. Abroad, US President Donald Trump announced the long-awaited ‘reciprocal’ tariffs on Thursday morning AWST, igniting a sell-off in the global equity markets and a drop in government bond yields.

In Australia, the February CPI indicator suggested that inflation remained close to the mid-point of the RBA target range. The Judo Bank flash PMIs showed faster expansion in March, but confidence regarding future conditions weakened. The 2025-26 Commonwealth Budget confirmed manageable deficit and debt levels at the federal level.

In Australia, employment saw an unexpected drop in February, but the unemployment rate remained steady at 4.1% amid lower participation. The Westpac leading index suggested above-trend economic activity growth within three to nine months.

In Australia, NAB business conditions improved a little in February, but business confidence declined back into negative territory. Westpac consumer sentiment bounced in March, supported by the recent RBA cash rate cut. Melbourne Institute consumer inflation expectations dropped to the lowest level in 3.5 years.