More on CBA's dismal outlook for Australia's economy this quarter ... and RBA

Author: Eamonn Sheridan | Category: Central Banks

The earlier post is here, with Commonwealth Bank of Australia tipping a huge contraction for the Australian economy in Q3 2021. 

CBA forecast -2.7% q/q and therefore a delay to the RBA taper to at least February 2022.
  • and 300,000 jobs risk being lost
  • revise their forecast for the first RBA rate hike to May 2023 (previously were expected late in 2022)
  • The negative shock to the economy, particularly the labour market, over the next few months will mean that it takes a little longer for wages pressures to fully emerge
  • forecasting GDP -1.3% q/q in Q3 (prior +0.4%)
  • and the RBA to defer its QE taper until at least November

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