Here is RBC on the RBA, canvassing the positives and negatives for the Australian economy and monetary policy
Its not too bad indeed for a really brief a summary:
- The Reserve Bank of Australia continues to take a glass half full approach
- helped by solid GDP growth and declining unemployment
- But they admit wages and inflation will likely be slow to follow, arguing for steady rates well into next year
- Australian GDP growth is expected to continue at a 3% pace even as consumers and housing face some headwinds
- Unemployment is trending lower but remains above the RBA's estimate of full employment. And international experience has shown wage growth can be slow to follow absorption of slack.
Where to for the Bank?
- That should keep the RBA sidelined well into next year.
