Daily Flows & Insights – Australian Economy Slower Than Expected

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.
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Curve Team
Jack Pedersen