Pendal Group

In September, Australia posted its highest Gross Domestic Product (GDP) growth numbers in over 4 years – but does this mean the Reserve Bank of Australia (RBA) has an interest rate hike in store? The answer lies partly in understanding the terms of trade and some other key factors that may sway an RBA decision. The terms of trade are important for Australia as they represent purchasing power of our exports relative to imports. If we see iron ore or coal prices rise in the coming months, while at the same time the cost of imports is flat or even falls, the terms of trade may rise once again. In the full article, we discuss GDP growth, the Australian Dollar, and the outlook for rates: (VIEW LINK)


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