According to JPMorgan:
- Australian housing investment will contribute less to gross domestic product than the losses from a slowdown in mining investment
- Dwelling investment would add only 0.5%points to GDP over 2013 in the best case scenario, but lags could be such that these gains do not materialize until 2014
Australian Housing Growth Won’t Fill Mining Gap, JPMorgan Says
–
This sort of analysis adds to the case for further RBA rate cuts. Earlier I posted analysts opinions that there are two 25 basis point cuts likely this coming year.
