GDP joy rings hollow for the RBA

A solid GDP result won't be enough for the Reserve Bank to alter the cash rate, with slumping business investment and fiscal austerity signalling further economic challenges ahead.

Growth was stronger than the market expected in the December quarter but the economic outlook is still fraught with challenges. The Reserve Bank of Australia will be reluctant to make a commitment on interest rates until it has a better grasp of the mining investment collapse and the Coalition’s budget intentions.

Real Gross Domestic Product rose by 0.8 per cent in the December quarter, beating market expectations to be 2.8 per cent higher over the year. Annual growth remains below trend but has picked up over the past three quarters.

Graph for GDP joy rings hollow for the RBA


SMS Code Sent…

Hi {{ user.FirstName }}

Looks like you've already taken a free trial

Please enter your payment details

We have sent you a code via SMS to {{user.DayPhone}}

please enter this code below to activate your membership

If you didn't receive SMS code please

Looks you are already a member. Please enter your password to proceed

Please untick this box when using a public or shared device

Verify your mobile number to unlock a FREE trial

Please sign up for full access

Updating information

Please wait ...

  • Mastercard
  • Visa

Related Articles