Highlights of the RBA's monetary policy meeting minutes

19 Sep 2017 11:15 AM

The following are the highlights of the Reserve Bank of Australia's monetary policy meeting minutes in September:

  • There is a need to balance the risk of rising household debt and lower inflation.
  • The rise in the Australian dollar was driven by a decline in the US dollar, which could weigh on domestic growth and inflation.
  • A continued rise in the Australian dollar could slow growth and inflation.
  • The economy grew below trend in 2016/2017 but most recent data were positive.
  • The Reserve Bank of Australia (RBA) meeting started with discussing labor market conditions that continue to improve.
  • Leading indicators suggests that jobs are likely to continue to pick up.
  • Job growth supports increased household incomes and increased spending, but rising debt is a real risk.
  • There is still spare capacity in the labor market and wage growth is expected to remain low for some time.
  • There are clear signs of housing market eased in Sydney and less so in Melbourne.
  • Investment outlook in the non-mining sector improved as infrastructure spending was strong.
  • The Reserve Bank of Australia (RBA) has discussed China's impact on iron ore and prices are expected to fall as supply increases.
  • China's growth came stronger than expected but the rise in debt remains a threat.

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