The Australian economy in 2019 – house prices, growth and interest rates

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Oliver’s Insights

Key Points:

  • Australian growth has slowed again. The housing cycle downturn and its impact on the economy will likely see growth constrained to around 2.5-3%.
  • As a result, spare capacity is likely to remain significant, keeping wages growth and inflation low.
  • The RBA is likely to cut rates in 2019 and the housing downturn may see Australian shares continue to underperform global shares.

 

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