Westpac Economic's weekly update

Policy makers and the Australian CPI were in focus this week. For the RBA, the key themes on show in the minutes of the July board meeting were little changed: the consumer is lacklustre; business investment weak despite a lower AUD and firm confidence; and housing remains the key bright spot. In a subsequent speech by Governor Stevens, an interesting point of tension between the unemployment rate and the pace of growth was highlighted. For the CPI, the headline outcome came in below expectations; the core measure broadly in line. Overseas, the RBNZ lowered their policy rate and flagged further action. And in Greece, a semblance of normality emerged. Next week the focus turns to the US for the July FOMC meeting and Q2 GDP.