A round up of 5 quick views on the Reserve Bank of Australia outlook.
Dr. Shane Oliver, AMP Capital's Head of Investment Strategy and Chief Economist:
- Underlying inflation risks staying below target for longer and the Australian Dollar is too high, but growth is ok.
- National income is rising and the Sydney and Melbourne property markets are too hot.
- So best to stay on hold.
Emily Dabbs, an economist in the Sydney office of Moody's Analytics:
- Inflation pressures are starting to build, but the domestic demand remains constrained by high underemployment.
- The central bank is keeping a close watch on the hot housing property, and further easing is unlikely while household debt continues to grow strongly.
Matthew Peter, chief economist at QIC (QIC is Australia's second largest wholesale funds manager):
- The hot state of the housing market will keep the RBA from cutting rates,
- The tepid recovery in the economy and lack of wage growth and core inflation will keep the RBA from raising rates
- RBA on hold through 2017 and the first half of 2018
Janu Chan, senior economist at St George Bank
- The RBA is needing to balance a mixed outlook for the domestic economy and risks in the housing market.
- It suggests that the RBA will likely remain on hold in coming months.
Savanth Sebastian is Equities Economist at the Commonwealth Bank (CommSec)
- The RBA is comfortable how the economy is evolving
- Rate cuts are not on the agenda and inflation remains contained
