The June RBA Board minutes are probably a bit more dated that usual because the Board meeting pre-dated the betterthan expected QI GDP data. The Board minutes note that GDP growth in 2014 is “expected to be below trend…risinggradually thereafter”. However the strong QI print means that the next few GDP data outcomes will need to be quite low, ifgrowth in 2014 is to be below trend. This looks unlikely given recent data prints. Overall, the minutes are more dovish thanyou would expect given the recent encouraging data. There is still a bias to accentuate the downside risks.
Read the full report: Economic Research