CBA said again today that they expect the first rate cut from the RBA in September, followed by another 2 for a total of 3 cuts of 25bp each in 2024.
CBA on the data earlier:
- Momentum in the economy has ground to a halt
- Household consumption inched higher but has gone significantly backwards on a per capita basis over the past year.
- Recurrent public spending grew at a trend-like pace, business investment pushed higher and net exports made a decent contribution to growth.
- Residential construction fell sharply and the supply and demand imbalance in the housing market has further widened.
- Nominal GDP increased by 1.4%/qtr due to higher domestic prices, a lift in the terms of trade and the small lift in production.
- Real household disposable income posted a welcome increase over the quarter but sits 0.6% lower over the year.
- The savings rate increased to 3.2% but still sits comfortably below its pre-pandemic five year average of ~6.0%.
ICYMI:
