Westpac economics' weekly wrap-up

It has certainly been a very busy week. Greece reached agreement on initial reforms with European leaders, subsequently passed by their parliament. Now negotiations on debt restructuring can begin. Markets are happier, but the economic cost for Greece is such that uncertainty will persist. In the US, FOMC Chair Yellen remained optimistic on the outlook, believing consumption would strengthen. That sets the scene for a September commencement to the rate normalisation process -- global developments permitting. Chinese GDP on the other hand was constructive, with signs of strengthening momentum. In Australia, consumer sentiment weakened further, and there was clear evidence of concerns over housing affordability. Next week, the focus will be on the Australian CPI.