Consumers start opening their wallets

December 05, 2017

The Reserve Bank board is not expected to increase the cash rate when it meets on Tuesday.

Economists expect this week's economic growth figures will record a strong expansion over the past year, suggesting solid employment gains can extend into 2018.

While the Reserve Bank will welcome such an outcome, the central bank is not expected to start lifting interest rates just yet, awaiting a pick-up in wage growth.

The central bank board meets on Tuesday for its final gathering of the year and won't meet again until February.

Economists widely expect the Reserve Bank to leave the cash rate at a record-low 1.5 per cent, where it has stood since August 2016.

Tuesday will also see the final quarterly components to Wednesday's national accounts as data for international trade and government spending are released.

At this stage, economists expect Wednesday's national accounts will show the economy grew by 0.8 per cent in the September quarter.

This would lift the annual rate to 3.1 per cent from 1.8 per cent previously, helped by the 0.4 per cent growth contraction recorded in the September quarter 2016 dropping out of the equation.

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