RBA to begin winding back "very accommodative" policy – Goldman Sachs

Analysts at Goldman Sachs came out with their latest note on the RBA monetary policy outlook, following the release of better-than expected Aus Q4 GDP figures earlier today.

Key Points:

If the upward revisions are incorporated into the data, the annual gain in GDP is above that forecast by the RBA (in its February SoMP)

The Reserve Bank of Australia is better placed then to begin winding back "very accommodative" policy

Upbeat on wages, real net national disposable income increased at its quickest pace since the first quarter of Q 2011

Forecast a first rate hike in Q1 of 2018 (up 25bps)