Central Banks

Reserve Bank of Australia Governor Bullock says she expects Q1 GDP growth to be low

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Reserve Bank of Australia Governor Bullock reading the writing on the wall for economic growth in Australia:

Reserve Bank of Australia Governor Bullock and Assistant Governor (Financial Markets) Kent appearing before the Australian parliament

  • before the Senate Economics Legislation Committee

Bullock:

  • expect Q1 GDP growth to be quite low
  • economy is weak, that is showing up in consumption
  • looking for a soft landing for the economy
  • underlying inflation is coming down, but only slowly

If by underlying she means core, that’s rising. The latest monthly reading:

Trimmed mean: 4.1% y/y

More:

  • demand still exceeds the economy’s capacity to supply

Ugh … demand > supply means inflation pressure

More:

  • Not ruling anything in or out on policy

This article was written by Eamonn Sheridan at www.forexlive.com. Source