Exports contributed 1.4% to the economy in the September quarter which contributed to a stronger than expected 0.9% seasonally adjusted GDP numbers for Q3. Year on year GDP growth was 2.5%. The Australian Dollar closed yesterday at 73.06 US cents up from end of November level at 71.89 US cents. This supports RBA’s decision to hold the cash rate at 2% in spite of the weak June quarter GDP numbers which was 0.2%.
Key points from glenn stevens' december statement
Here are the key points from RBA Governor Glenn Stevens statement on Tuesday 1 December when the RBA Board held the cash rate unchanged at 2%:
Global economy:
- Expanding at a moderate pace
- Softening conditions in Asia
- Continuing US growth
- Recovery in Europe
Australia economy:
- Moderate expansion continuing
- Inflation is low and forecast within RBA target band
- Low interest rate supporting borrowing and spending
- Investor lending in the housing market has eased
- Pace of growth in house prices in Melbourne and Sydney have moderated
- Australian dollar is adjusting to significant decline in key commodity prices.
Global economy:
- Expanding at a moderate pace
- Softening conditions in Asia
- Continuing US growth
- Recovery in Europe
Australia economy:
- Moderate expansion continuing
- Inflation is low and forecast within RBA target band
- Low interest rate supporting borrowing and spending
- Investor lending in the housing market has eased
- Pace of growth in house prices in Melbourne and Sydney have moderated
- Australian dollar is adjusting to significant decline in key commodity prices.
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