National Accounts

I'm sure you're aware of the strong National Accounts figures released yesterday - up 0.6% after a positive 0.4% the previous quarter. The RBA will now be looking very closely at whether the economy can sustain this positive level of growth in the absence of government money being thrown at it. Crucially though, figures such as these, and the positive sentiment being generated, can have the effect of emboldening investors, businesses and consumers. All good for economic growth which will need to me managed if it picks up by raising interest rates to ensure the economy doesn't heat up too much.

Interest rate markets reacted with rates moving back up across the board after moving down Tue afternoon / Wednesday morning. Rates have been very volatile over the last week as markets attempt to work out the state of play and what it means for rates.