Goldman Sachs remarks following today's GDP result

(here: Australia - GDP for Q4: +1.1% q/q (expected +0.8% q/q) )

  • If the upward revisions are incorporated into the data, the annual gain in GDP is above that forecast by the RBA (in its February SoMP)
  • The Reserve Bank of Australia is better placed then to begin winding back "very accommodative" policy
  • GS is upbeat on wages (well, more upbeat than others), says real net national disposable income increased at its quickest pace since the first quarter of Q 2011
  • GS forecast a first rate hike in Q1 of 2018 (up 25bps)

Rates update, AUD the outperformer against the USD today:

More on the Australian GDP surge here:

  • Australian GDP responses, ANZ: RBA has no reason to move on policy for near future
  • Australia - Macquarie on the RBA after today's GDP ... tipping fewer rate cuts
  • Australian GDP responses: "All components of domestic demand advanced"