STOCKS | National Australia Bank Sees Weak Australian Q2 GDP

According to Jin10, National Australia Bank expects Australia’s second-quarter GDP to rise about 0.2% quarter on quarter and 1.8% year on year, with the data due on Wednesday and likely to be quite weak. Economic growth weakness usually means the Reserve Bank of Australia will not raise rates further, while prolonged low productivity growth means inflation pressure may still emerge even if growth remains slow. The article said Australia is currently in that situation, that the Reserve Bank of Australia will always prioritize controlling inflation, that calls for economic reform to lift productivity have largely gone unanswered because of the political cost, and that Reserve Bank of Australia Governor Michele Bullock has said the issue must be addressed by the federal government in Canberra.