Australian Retail Sales Decline, Validate RBA Hopes of Cooling Growth

Australian retail activity declined in April, declining -0.2% following an equivalent expansion in March. The news is music to the ears of RBA policy markers - the bank has grappled with taming inflationary pressure as buoyant activity in the mining sector brought on a tight labor market, bid up wages, and drove up the price level. Interest rates have remained on hold at 7.25% since March as the RBA maintains that monetary tightening has been "substantial" enough to contain inflationary pressure. A slowing in Retail Sales will help the bank in their policy objectives.

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