Retail Sales Doesn’t Move the Needle & RBA Holds Cash Rate

• Yesterday, retail sales were released and the RBA held the cash rate at 4.10%, following the February rate cut.
• Retail sales rose by 0.2% m/m, following a 0.3% gain in January, driven primarily by food retailing, cafés, and restaurants.
• The result is not particularly strong and doesn’t raise concern for the RBA around a rebound in consumer spending.
• The RBA’s tone was broadly expected, though attention was drawn to growing global uncertainty, particularly surrounding U.S. tariffs.
• With tariffs typically associated with slower growth and upward price pressures, the RBA is expected to monitor developments closely and adjust policy as needed.
• Given the pending announcements from the U.S. on “Liberation Day”, it’s understandable the RBA held off on stronger forward guidance at this meeting.