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.
Economy
Dec 5, 2012
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.
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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.
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.