RBA Hints at GDP Growth Rate with Increase in Inflation

The U.S Feb flash services PMI dropped from 55.6 to 53.9 versus the previous value of 55.8, the U.S. Feb flash PMI dropped from 55.0 to 54.3 versus the previous value of 54.7 and the New Zealand GDT auction dropped by 3.2%. With the manufacturing service output producing weaker results than forecasted, the US PMI readings from Markit stated that there is a drop in the business activity in the country.

The Federal Open Market Committee Members Kashkari and Harker watched out for a hawkish signal when Philadelphia’s Federal Reserve President Patrick Harker commented on March’s rate hike. The Reserve Bank of Australia Governor Philip Lowe promised the GDP growth rate for the next two years with an increase in inflation. “It is difficult to quantify this risk, but it is one that is difficult to ignore. High household debt levels could hurt the economy,” Governor Philip Lowe commented.

Looking at the German business index, the present expectations may remain with slight changes because of the Gross Domestic Product and the Euro Consumer Price Index showing a negative output. The focus continues to remain on the Canadian Retail Sales as the performance of the retail sector doesn’t seem to be doing well when compared with the previous month rate of 0.2%. The U.S Home Sales shows a positive rate with 5.54M helping the dollar to bounce back and hence we end the day with the Federal Open Market Committee’s Member Powell’s speech.

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