Reserve Bank of Australia Governor Bullock:
- Latest data suggest consumption has been little stronger than we thought
- Data giving us time to think whether there is more easing to come or not
- Output gap is probably close to balance, hard to judge
- Slower productivity means economy and wages can't grow as quickly
- Markets have a very goldilocks view of global economic outlook
- Policy is not really restrictive inn Australia, its marginally tight
- Models suggest the neutral rate is around 3.0%, but its very uncertain
Cautious comments from Bullock on her outlook. Expectations for a cash rate cut from the RBA at its next meeting, November 3 and 4, are not high.
