We expect an acceleration of strategic investments into onshore China bonds as these securities join emerging market and global bond indexes.
Nominal growth is likely to pick up, reflecting some recovery in real GDP and a gradual rise in inflation.
If the pace of monetary tightening in the U.S. is any sort of leading indicator for policy tightening in the rest of the world, including Australia, then in Australian parlance, it will be “like watching grass grow.”
After 25 years of steady economic growth, Australia is on the verge of wresting bragging rights from the Netherlands for the longest period on record without a recession. While this historic event should be celebrated, the future may not be as rosy.