Australian data - Retail Sales May 2025: +0.2% m/m, short of expectations again and recording a fourth month of sluggish spending:
- expected +0.4%, prior -0.1%
- +3.3% y/y (+3.8% prior), the slowest annual pace since November last year
Australian retail sales rose less than expected in May:
- drop in the food sector (this is a rarity)
- gains in clothing and department stores
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There is nothing in the data to stand in the way of an Reserve Bank of Australia rate cut next week. The Bank meet July 7 and 8, a 25bp rate cut is widely although not unanimously expected.
