Australia’s Q1 GDP consistent with RBA remaining on hold - NAB

Riki Polygenis, analyst at NAB, offered his insights on the latest Australian GDP numbers and its implications on the RBA’s policy stance.

Key Quotes:

“Today's data are consistent with monetary policy remaining on hold. The RBA will look through the volatility in GDP, however mixed labour market outcomes and weak wages and inflation data will prevent any hike. Meanwhile, there is tentative evidence that macroprudential and policy changes are leading to a softening in dwelling price growth, which will help to mitigate economic risks associated with rising household debt levels should it continue.”