Reserve Bank: What have you done for us lately?

All eyes are on the Reserve Bank of Australia’s (RBA) minutes of  its April 3 board meeting.

According to The Age, the RBA acknowledged growth for the global economy was expected to be at a below trend pace in 2012 because of ongoing economic weakness in Europe and a slowing of growth in China.

It seems more than ever that the RBA is now waiting for the consumer price index (CPI) data due on April 24 to determine its decision in May.

The sharemarket didn’t like the look of a slowing global economy, sending the All Ordinaries (INDEX: ^AORD) and S&P/ASX 200 (INDEX:^AXJO) sharply into reverse.

See if you can spot the inflection point. Thanks for nothing, RBA. Not surprisingly, the Aussie dollar also sank.

Source: Yahoo!7 Finance

Stocks on the nose today include yesterday’s hero Linc Energy (ASX: LNC), uranium company Paladin Energy (ASX: PDN) and perennial under-performer Leighton Holdings (ASX: LEI).

Winners, perhaps somewhat surprisingly, include banks Macquarie Group (ASX: MQG), National Australia Bank (ASX: NAB) and Bendigo and Adelaide Bank (ASX: BEN).

According to Bloomberg, traders are pricing in a 91 per cent chance the RBA will reduce borrowing costs by a quarter percentage point to 4 per cent at the next policy meeting on May 1.

It sounds like a done deal. But we’ve been here before, in February, when a rate cut seemed a living certainty. Regular Motley Fool readers will know how that one ended.

Could the RBA surprise us again? A half percentage point cut on May day? I wouldn’t count it out.

With interest rates potentially about to fall, dividend paying stocks may come back into vogue.

If you’re looking for income from your shares, look no further than “Secure Your Future with 3 Rock-Solid Dividend Stocks”. In this free report, we’ve put together our best ideas for investors who are looking for solid companies with high dividends and good growth potential. Click here now to find out the names of our three favourite income ideas. But hurry – the report is free for only a limited time.

More reading

Bruce Jackson has an interest in National Australia Bank. The Motley Fool’s purpose is to help the world invest, better. Take Stock is The Motley Fool’s free investing newsletter. Packed with stock ideas and investing advice, it is essential reading for anyone looking to build and grow their wealth in the years ahead. Click here now to request your free subscription, whilst it’s still available.

Top 3 ASX Blue Chips To Buy For 2019

For many, blue chip stocks mean stability, profitability and regular dividends, often fully franked…

But knowing which blue chips to buy, and when, can be fraught with danger.

The Motley Fool’s in-house analyst team has poured over thousands of hours worth of proprietary research to bring you the names of The Motley Fool’s Top 3 Blue Chip Stocks for 2019.

Each one pays a fully franked dividend. The names of these Top 3 ASX Blue Chips are included in a specially prepared FREE report. But you will have to hurry. Depending on demand – and how quickly the share prices of these companies moves – we may be forced to remove this report.

See the 3 blue chip stocks

Two New Stock Picks Every Month!

Not to alarm you, but you’re about to miss a very important event! Chief Investment Advisor Scott Phillips and his team at Motley Fool Share Advisor are about to reveal their latest official stock recommendation. The premium “buy alert” will be unveiled to members and you can be among the first to act on the tip.

Don’t let this opportunity pass you by – this is your chance to get in early!

Simply enter your email now to find out how you can get instant access.

By clicking this button, you agree to our Terms of Service and Privacy Policy. We will use your email address only to keep you informed about updates to our website and about other products and services we think might interest you. You can unsubscribe from Take Stock at anytime. Please refer to our Financial Services Guide (FSG) for more information.