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:
- 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.
- The improvement in the global economy has contributed to higher commodity prices, which are providing a boost to Australia’s national income.
- Interest rates have increased in the United States and there is no longer an expectation of further monetary easing in other major economies.
- GDP was weaker than expected in the September quarter, largely reflecting temporary factors. A return to reasonable growth is expected in the December quarter.
- Some further pick-up in non-mining business investment is also expected.