Analysts at the National Bank of Australia say Australia's economic growth is weak in the second quarter of 2019,with GDP rising by 0.5% q/q.
They note that while growth is slightly stronger than in the first three months and improved with a sharp increase in net exports, private sector growth is likely to decline, consumption is still weak and housing investment is falling further.
Poor results are likely to lead to a further decline in the Bank of Australia's reservation outlook. We still expect the bank to cut interest rates by November. But we acknowledge that the risk of excessive easing policies and shifting to unconventional policy next year should weaken the economy, especially now that global risks have intensified.