Key Views

• We at Fitch Solutions retain our view that the Reserve Bank of Australia (RBA, the central bank) will keep the benchmark policy rate (cash rate) unchanged until 2022.
• That said, surging house prices could raise policy constraints and eventually lead to the RBA paring down some of the ultra-accommodative measures that have been

Key View

• Australia will accelerate its shift towards cleaner generation sources over the coming decade, supported by green hydrogen developments and energy storage facilities.

• This will pose structural risks to its thermal power sector, which faces an increasing risk of early closures due to its inability to compete with the

Key View

• We at Fitch Solutions have revised up our real GDP growth forecast for Australia from a contraction of 3.9% to a contraction of 3.0% in 2020. In 2021, we now expect the Australian real GDP to grow by 3.7%, upwardly revised from 3.5% previously.
• Our latest forecast change reflects the strong recovery experienced by the Australian

Key View

• We see substantial growth opportunities for the green hydrogen sector in Australia over the coming years, given the increasing viability of the technology and mutual complement with renewable energy.
• Green hydrogen will support Australia’s ongoing renewables growth momentum, particularly as the sector has grown increasingly

Key View

• An ageing population and changing lifestyles will accelerate healthcare spending growth in the long term in Australia.
• Innovative drug sales in the country are expected to gradually expand throughout the forecast period, despite the effects of cost-containment policies.
• The private sector will play an increasingly important role

Key View

• We expect the Reserve Bank of Australia to keep its current policy stance unchanged through 2021.
• While the benchmark policy rate (cash rate) will remain at 0.25% over the remainder of 2020 and 2021, we expect the bank to pare back its quantitative easing programme.
• We have revised down our forecast for consumer price inflation

Key View:

• As a result of consumers retreating back into the homes and focusing on priority purchases during Covid-19 related lockdowns in Australia, we have witnessed our 2020 forecast revisions starting to play out.
• The three segments that we revised up have recorded year-on-year growth in Q120, while five of the nine categories that we

Key View

• Australian consumers' pent-up demand for Tesla-branded battery electric vehicles (BEVs), especially the Model 3, plus the increased popularity of plug-in hybrid EVs (PHEVs) will see a significant increase in electric vehicle (EV) sales over 2020, albeit from a low base.
• Australia's weakening economy will place increased pressure