RBA: Waiting for GDP - AmpGFX

One reason why the RBA may not make any change in its policy guidance this month is that there has been limited new information on the economy, and the RBA is waiting for the Q2 GDP report to be released on Wednesday, suggests Greg Gibbs, Analyst at Amplifying Global FX Capital Pty Ltd. 

Key Quotes

“There has been little direct effect on the economy yet from global risks.  Surveys of business conditions have waned somewhat from earlier in the year.  The capital expenditure survey released last week showed weaker investment than expected in Q2.”

“However, employment indicators have remained solid.  The unemployment rate has fallen to a low since 2012, wages growth has ticked up from record lows, retail sales have been decent, export revenues are stronger as the mining investment boom early in the decade is reaping benefits.”

“The RBA is likely to maintain its view that “GDP growth is expected to average a bit above 3 per cent in 2018 and 2019.”