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RBA: Household consumption remains a source of uncertainty

Following are the key headlines from the June RBA monetary policy statement (via Reuters):

Unchanged policy consistent with sustainable economic growth.

Consistent with meeting CPI target over time.

Level of interest rates continues to support the Australia economy.

Expects economic growth to pick up to average above 3% in 2018, 2019.

Inflation likely to remain low for some time.

Wage growth appears to have troughed.

Wage growth remains low, likely to continue for a while yet.

Appreciating AUD would be expected to result in a slower pick up in the economy, inflation.

AUD remains within range from past 2 years.

Housing markets in Sydney, Melbourne have slowed.

Macroprudential measures helpful in containing the build-up of household debt.

Household consumption remains a source of uncertainty.

There are concerns about the direction of international trade policy in the US.

There are concerns about economic developments in a few emerging markets.

Author

Dhwani Mehta

Dhwani Mehta

FXStreet

Residing in Mumbai (India), Dhwani is a Senior Analyst and Manager of the Asian session at FXStreet. She has over 10 years of experience in analyzing and covering the global financial markets, with specialization in Forex and commodities markets.

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