Daily Flows

• With Demand for funds picking up and the most recent rate hike having to be priced in TD and NCD rates are elevated.
• 5.20% for 6 months, 5.45% for 1 year and 5.20% for 2 – 5 years are attainable for active market participants.
• NCD margins continue to be offered at +50 for 3 months.

Australian Economy Slower Than Expected

• Yesterday, Australia’s GDP growth rate came in at 0.2% Q/Q. This was below the previous quarter of 0.6% and the market forecasts of 0.3%.
• This print marks the 6th consecutive quarter of growth, however the slowest pace.
• In per capita terms, the economy slowed by -0.3% for the Q2 quarter.
• Discounting covid lockdown periods, this is the first decline in per capita output since December 2018.
• It does not seem this print will affect the RBA going forward as the Central Bank welcomes slow growth which would in turn reduce demand and trigger deflation.