Australia & New Zealand Economics

Australia & New Zealand Economics Update

10 August, 2018

RBA paints a near-perfect picture of the economy

The Reserve Bank of Australia’s new projections that the economy will be in an almost perfect state in 2020 suggest that the Bank is edging ever so slowly towards raising interest rates. Our view that GDP growth will be weaker than the RBA expects and that underlying inflation will stay below the 2-3% target for longer suggests that interest rates won’t rise until late next year if not sometime in 2020.

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