Growth of the real economy in Australia remains modest in Q2 2017 at 1.8% for the year, though the quarterly growth of 0.8% was good. Private sector real investment growth remains feeble, though the labour market in August showed significant strengthening of employment, hours, participation and advertised vacancies. While this is reducing underemployment, weak productivity growth may dominate to keep wage and price inflation low in the near future. The global economy is improving, but security and credit risks in our region remain a challenge. Therefore my recommendation are for no change now, and a mild chance of an increase in 2018.