Brexit blues unlikely to dent Aust growth

Sydney: Brexit worries are unlikely to dent the Australian economy, which could finally return to trend growth in the second half of this year as commodity prices bounce.
The Westpac-Melbourne Institute Leading Index has picked up significantly since the start of the year.
It follows 14 months of sluggish below-trend momentum, Westpac chief economist Bill Evans says.
“This latest reading suggests growth over the next three to nine months will be almost around trend,” Evans said.
“That outlook is more consistent with Westpac’s forecast for growth holding steadily around a three per cent pace over the next year.” An improvement in commodity prices, the share market and US industrial production drove the result.
Westpac expects the Reserve Bank to slash the cash rate to a new record low of 1.5 per cent next month.
In its July minutes, released on Tuesday, the central bank appeared more cautious around the local jobs market and housing activity.
“However, the key to the August decision will be the June quarter inflation report which is expected to confirm that inflation in Australi a remains low. Further monetary stimulus will be required to return inflation to three per cent zone by the end of 2017. – AAP