The following are the most important comments from the Westpac chief economist:
- The RBA will keep interest rates unchanged at its next meeting in September.
- The most interesting question is whether the RBA will raise interest rates next years as markets expect and have been referred to in the Westpac-Melbourne consumer confidence survey.
- A rise in business confidence and improving labor market conditions, along with the optimistic growth expectations of the RBA, support the rise in the rates.
- Interestingly, in the latest RBA meeting minutes that released yesterday, it appeared less confident in achieving the inflation target. We expect interest rates to remain unchanged through 2018.