Economy

Dec 5, 2012

GDP data supports RBA rate cut — just

Today's GDP data shows the economy travelling at around trend, but consumers are cautious and there's some surprising sources of growth. Glenn Dyer and Bernard Keane report.

Tuesday’s RBA rate cut and this morning’s slightly weaker GDP September quarter numbers (including a 4% fall in our terms of trade) for the September quarter have had no impact on the value of the Aussie dollar which is now the big policy dilemma for the central bank and the federal government.

The rate cut rationale from the central bank was supported (just) by today’s GDP data, but had the RBA known of the composition of the growth drivers in the quarter, debate at the board meeting might not have been so one-sided in favour of a cut.

Free Trial

Proudly annoying those in power since 2000.

Sign up for a FREE 21-day trial to keep reading and get the best of Crikey straight to your inbox

By starting a free trial, you agree to accept Crikey’s terms and conditions

2 comments

Leave a comment

2 thoughts on “GDP data supports RBA rate cut — just

  1. Simon Mansfield

    So is the glass a quarter full or a third full? Come on boys admit you got it wrong – all year long – just like the RBA Gov.

  2. Achmed

    Are those GDP and growth figures right? I keep reading that our econmoy is down there with Spain, Greece and the like from Abbott and his supporters. And Abbott would know – he’s got an Economics degree. Never worked in the field but he’s got the degree.

Share this article with a friend

Just fill out the fields below and we'll send your friend a link to this article along with a message from you.

Your details

Your friend's details

Sending...