Latest update from Commonwealth bank of Australia

In summary:

RBA lowered its NAIRU estimate

  • will mean mon pol needs to be eased further to push u/e rate towards 4.5%

Australian economy fundamentals decent

  • H2 economic growth to lift

---

In the report CBA once again refer to QE (posted on this last week, here)

---

ps, here is what CBA are watching for the Reserve Bank of Australia minutes (June meeting) due today at 0130GMT:

  • June meeting where the RBA lowered the cash rate by 25 basis points
  • The RBA have emphasised the need to bring the unemployment rate lower to push inflation back up to target
  • We expect the RBA to out the cash rate again to 1.0% in August. We will be looking for any commentary that may suggest that the RBA wil move sooner than this.