- Reserve Bank of Australia reduced its economic growth and inflation forecasts as investment outside the mining industry remains elusive, the labor market softens and a high local currency contains prices.
- “Mining investment is expected to peak,
- both fiscal consolidation and the persistently high level of the Australian dollar will weigh on growth,
- and there is little sign of a near-term pick-up in non- mining business investment.”
- the global outlook has been “more positive in recent months”
- China’s economy has stabilized
- RBA predicted “below trend” 2013 growth of about 2.5 percent, compared with around 2.75 percent forecast in November.
- Consumer prices will rise 3 percent in the year to June 2013, compared with the 3.25 percent increase it had forecast three months earlier,
- “Improving conditions in the housing market are expected to continue to provide support to dwelling investment,”
- “Employment growth is forecast to remain modest over the course of this year, before rising gradually over 2014.
- The unemployment rate is expected to edge higher.”
RBA Statement of Monetary Policy – recap
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