What’s in store for the Australian economy in 2019?
The Reserve Bank has been watching the economy closely in the past two years, with interest rates rising and inflation still high.
The central bank’s next annual report is due on July 29.
The Bank of Australia is expected to release its next interest rate forecast in August, but the Bank of England and the Australian dollar have also been watching developments closely.
The central bank is also planning to release a third quarter economic forecast in September.
In an effort to help investors understand the state of the economy, the bank is launching a free quarterly newsletter to highlight some key themes from the bank’s quarterly financial statement.
“The next three quarters of 2019 will be critical for the outlook for the economy,” Governor Glenn Stevens said.
“It is likely that the economy will perform better than the Bank anticipates in 2019, and the outlook may be better than in the June quarter and the July quarter, and perhaps even better than we anticipate in the second quarter of 2019,” he said.
Key points:The Reserve Bank is expected a new interest rate hike in 2019″The outlook for inflation is likely to be better in 2019 than in any quarter since the early 2000s”The economy will be expected to be more resilient than forecast in the May quarter”The bank is forecasting the economy to grow by 1.4 per cent in 2019.”
These are some pretty big swings in forecasts,” Professor Stevens said of the economic outlook for 2019.
The Bank of India’s governor, Raghuram Rajan, said the RBI’s forecast for 2019 growth was still “very close to what we would expect”, but the economy would grow by a weaker 3.1 per cent.”
We have not given much thought to a rate hike, but I am very confident that our economic outlook will improve,” Mr Rajan said.