With very little data out last week the main news for markets was the release of the June RBA Board meeting minutes. The minutes revealed no material changes to other recent RBA communications. The RBA still sees economic growth picking up to 3% in the next couple of years after the current expected soft patch in growth and March quarter GDP falling to only 1.7%. Economists expect the official cash rate to remain at 1.50% through all of 2017 and well into 2018. Current market pricing agrees and shows there will be no change in the official cash rate in 2017 and only a 25% chance of a rate hike by June 2018 versus virtually no chance of a rate cut.
Weekly Economic Commentary
Source: Rural Bank