Reserve Bank of Australia Governor Bullock says she expects Q1 GDP growth to be low

Reserve Bank of Australia Governor Bullock reading the writing on the wall for economic growth in Australia:

• Very weak Australian economic growth expectations cut even further

Reserve Bank of Australia Governor Bullock and Assistant Governor (Financial Markets) Kent appearing before the Australian parliament

• before the Senate Economics Legislation Committee

Bullock:

• expect Q1 GDP growth to be quite low
• economy is weak, that is showing up in consumption
• looking for a soft landing for the economy
• underlying inflation is coming down, but only slowly

If by underlying she means core, that’s rising. The latest monthly reading:

Trimmed mean: 4.1% y/y

• prior: 4.0%

More:

• demand still exceeds the economy’s capacity to supply

Ugh … demand > supply means inflation pressure

More:

• Not ruling anything in or out on policy

This article was written by Eamonn Sheridan at www.forexlive.com.