VIEW: Barclays note that "Australia's economy...>

RBA: VIEW: Barclays note that "Australia's economy continues its impressive

performance, and is on course to register growth of close to 3% during both 2018

and 2019, according to our forecasts. This strength is being accompanied by

record employment creation, and a gradually declining unemployment rate.

However, consumption is running below income growth levels, indicating consumer

caution. Nonetheless, the core issues of 1) low wage growth, 2) subdued CPI

inflation, and 3) falling house prices are continuing to support a

disinflationary backdrop, despite stronger growth. We believe that this

three-course weakness in consumer price inflation, slow wage growth and

continued drop in house prices is likely to prevent policy normalisation for

some time, even if employment and growth remain relatively strong. Amid such a

disinflationary backdrop, we think the RBA is likely to look through the gradual

decline in unemployment, even if the rate of unemployment moves closer to 5% by

end-2019. Given this, we are pushing back our RBA rate hike forecast to 2020,

and now expect two rate hikes in H1 2020. Previously, we had expected the RBA to

start hiking rates in H1 2019."