Economists say growth stunner won’t stop RBA rate cut

Original article by Jessica Sier
The Australian Financial Review – Page: 32 : 2-Jun-16

Deutsche Bank’s Adam Boyton says inflation will be a bigger influence on the Reserve Bank of Australia’s monetary policy deliberations than GDP data. New figures show that the economy expanded by a higher-than-expected 1.1 per cent in the March 2016 quarter, with year-on-year growth of 3.1 per cent. There is general consensus among economists that there will be at least one more interest rate cut in 2016, although Craig James of CommSec cautions that this could put more upward pressure on house prices.

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DEUTSCHE BANK AG. RESERVE BANK OF AUSTRALIA. COMMONWEALTH SECURITIES LIMITED. AUSTRALIAN BUREAU OF STATISTICS. NATIONAL AUSTRALIA BANK LIMITED – ASX NAB