I posted ANZ's projection for a contraction in growth here:
ANZ comments on what it means for the Reserve Bank of Australia:
- For the RBA, a case can be made for looking through the immediate impact on demand, given the likely rebound later in the year.
- Our view, however, is that while the economic impact of the coronavirus does not drive the case for further easing, it adds to the weak tone in the economy and suggests further rate cuts are likely this year
Seems to me the assumptions being made are this coronavirus outbreak is going to be contained quite soon. Dunno if that is a reasonable assumption right now though.
Anyway, still to come from the RBA today, due at 0130GMT:
- Governor Lowe speaking, topic is The Year Ahead
Based on the consistently incorrect RBA projections for the year ahead in the past I don't know why he is speaking on this.
