A likely slowing in GDP won't change RBA minds with rates expected to remain steady again.

As things stand I’m not looking for a solid increase in fourth quarter Australian GDP (Wednesday 1130 AEDT). We’ve still got inventories (today 1130 AEDT), net exports, and the public accounts (tomorrow, same time) to come but, at the moment, the indicators suggest a GDP outcome in the order of 0.4 per cent. Perhaps less. As I mentioned last Monday, this softer GDP outcome (if that is indeed what we get) isn’t anything to really worry about, driven as it is by weak investment for the quarter which, as we know, is just volatility.



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