Below are the highlights of the MPC meeting minutes:
- The board of the bank has agreed that there is no strong case for near-term interest rate action.
- The next step for interest rates likely to be upward if the economy develops as expected.
- The Reserve Bank of Australia will be a source of stability and confidence amidst the gradual progress to targets.
- Global trade tensions are a material risk to outlook.
- The modest decline in the Australian dollar during the last period has been beneficial to the local economy.
- The board expects gross domestic product (GDP) to grow above expectations in the next two years.
- Labor market data are positive, with a significant drop in youth unemployment.
- Jobs are expected to grow above average, and unemployment will gradually drop toward 5%.
- It is expected to be a moderate increase in wage growth over the coming quarters.
- High mortgages by banks mean a slight increase in the average rate of outstanding home loan.
