ANZ ON THE RBA: The November...>

AUSTRALIA DATA REACT: ANZ ON THE RBA:

The November Statement on Monetary Policy (SoMP) contained no substantive shift

to the RBA's assessment of the economic outlook. Growth is expected to gradually

strengthen, the unemployment rate to fall and inflation to be broadly stable. --

- The global economy continues to provide a positive backdrop. Growth in

Australia's major trading partners looks "a little stronger" in the near-term,

but "is still expected to ease a little over the next couple of years". 

- On the domestic economy, forecast economic growth "is little changed". The

Bank sees growth accelerating to 3.5% by mid-2019, supported by public demand

and business investment. The positive spill-over effects from strong public

infrastructure spending are further supporting non-mining business investment.

Indeed, "the risks around the outlook for non-mining business investment are now

seen as being more positive than previously". The mining sector is also expected

to "contribute to economic growth" as the growth in resource exports "more than

offset the diminishing drag from lower mining investment".