Westpac Australia & NZ Weekly

In this week's edition, Chief Economist Bill Evans assesses the history of Reserve Bank policy action in relation to bank pricing. Based purely on history, the most likely outcome is that financial conditions are likely to tighten further, although the exact degree of tightening and its timing is uncertain. We expect that the RBA will await this information on the effective change in financial conditions before making a decision as well as assessing any early signs of the impact of this tightening on the economic outlook. There is limited data out this week. The focus will most certainly be on China Q3 GDP and partial data (out today) and the October RBA meeting minutes. Also out is the Westpac-MI Leading Index, and housing data in the US. (VIEW LINK)