It’s The Economy, Stupid: Philip Lowe’s Positive Outlook

In its decision yesterday, the RBA dismissed gloomsters and provided a widely positive outlook for the global and domestic economies in the coming years predicting above-average growth of 3 per cent. 

Here are some of the key take-aways from Governor of the RBA, Philip Lowe’s Statement yesterday reflecting the RBA’s view of the economy for 2017:

  1. Conditions in the global economy have improved over recent months. Business and consumer confidence have both picked up. Above-trend growth is expected in a number of advanced economies, although uncertainties remain.
  2. The improvement in the global economy has contributed to higher commodity prices, which are providing a boost to Australia’s national income.
  3. Interest rates have increased in the United States and there is no longer an expectation of further monetary easing in other major economies.
  4. GDP was weaker than expected in the September quarter, largely reflecting temporary factors. A return to reasonable growth is expected in the December quarter.
  5. Some further pick-up in non-mining business investment is also expected.

rba statement