Australia's 2Q GDP Data Likely to be Pretty Crummy

Dow Jones
昨天

0651 GMT - Australia's 2Q GDP growth data Wednesday are expected to be pretty crummy, with National Australia Bank expecting around 0.2% on the quarter and 1.8% from a year earlier. Tepid growth usually points to the Reserve Bank of Australia steering away from raising interest rates further. However, chronically low productivity growth means the economy can grow slowly and still generate inflation. That's the mix at the moment and the RBA will always choose to target inflation first. Repeated calls for economic reform to lift productivity have gone largely unheeded given the potential political costs. RBA Governor Michele Bullock has made it clear the problem must be addressed by Canberra.

 

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