Australia Westpac leading index rose from 4.24% to 4.48% in January. The data points to “above trend growth in the Australian economy through 2021”. Westpac expects 4% GDP growth in 2021, led by consumer spending, which contributes to around 3% to the overall growth rate.
As for RBA policy, Westpac expects the bond buying program to be extended beyond October. Yield curve control will be maintained through 2021. However, the Term Funding Facility will be “largely scaled back” after June.
