Australia & New Zealand Economics

Australia & New Zealand Economics Update

6 June, 2017

RBA willing to ignore the weak economy

Even though the economy may have contracted in the first quarter, the Reserve Bank of Australia left interest rates at 1.5% today and retained its optimistic view on the economic outlook. We suspect the RBA would be willing to look through a temporary fall in GDP, but it would find it harder to ignore two weak quarters in a row. While our central forecast is that interest rates will remain at 1.5% this year, the chances of a cut later in the year have increased somewhat.

Access this publication and more, take our free trial subscription today.

Free Trial

Already a subscriber? Simply log in to view this article.

Save to Library

New Book

Making a Success of Brexit
and Reforming the EU

by Roger Bootle

"Outstanding - engaging - absorbing"
Daily Telegraph

Buy now on Amazon
We use cookies to ensure you get the best experience on our website. Read our Cookie Policy for more information.