4 Mar 2015
Australian economy losing momentum - ANZ
FXStreet (Bali) - ANZ Economists expect growth in the Australian economy to remain below-trend for some time yet, calling for an RBA of 25bps in April.
Key Quotes
"Yesterday, Australian GDP grew 0.5% q/q and 2.5% y/y in Q4, broadly in line with expectations."
"It was a soft result, especially given it followed a weak Q3 – annualised growth over H2 2014 was just 1.8%. The outcome reflected falling mining investment, weak public spending, and a large subtraction from growth from inventories."
"On the positive side, exports rose solidly, growth in new housing construction remained strong, and household consumption grew a surprisingly strong 0.9% q/q and 2.8% y/y.
"We expect growth in the economy to remain below-trend for some time yet and continue to expect the RBA to cut the cash rate by a further 25bps in April."
Key Quotes
"Yesterday, Australian GDP grew 0.5% q/q and 2.5% y/y in Q4, broadly in line with expectations."
"It was a soft result, especially given it followed a weak Q3 – annualised growth over H2 2014 was just 1.8%. The outcome reflected falling mining investment, weak public spending, and a large subtraction from growth from inventories."
"On the positive side, exports rose solidly, growth in new housing construction remained strong, and household consumption grew a surprisingly strong 0.9% q/q and 2.8% y/y.
"We expect growth in the economy to remain below-trend for some time yet and continue to expect the RBA to cut the cash rate by a further 25bps in April."