- Next phase of mining boom has begun in the case of iron ore, but still some way to go for Gas
- Terms of trade have peaked, will probably fall by around 15% next year
- Chinese slowdown more material than expected a year ago, but not ‘disastrously so’
- Expect domestic consumption to grow in line with income
- Surprised AUD still so high given that ‘Terms of Trade’ peaked a year ago
- Pre conditions for a pick up in housing construction coming into place
- Board feels further easing may be necessary over time
- Latest inflation readings are a bit high, but not a major problem
- Encouraging pick up in productivity, but too early to conclude a new trend
- World will have to live with Eurozone anxiety for several years
AUD’s fairly static around 1.0408 after the mildly upbeat comments
