The end of the election uncertainty and the investor-friendly policies of the Coalition produced a relief rally on financial markets in May. Australia’s cash rate has been cut to a new record low of 1.25%. The decision to cut the cash rate is intended to stimulate economic growth and was partly driven by a fall in inflation for the March quarter.

We also look at the other economic indicators that paint a picture of the health of the economy, including consumer sentiment, movements in the Australian dollar, unemployment and wages as well as the state of the property market across all of the capital cities.