Growth on the Rise? The RBA Remains Confident

At the latest RBA meet up earlier this month the board observed that the outlook for Australia’s economy is showing very positive data, according to minutes released yesterday.

In determining whether to change the official cash rate, the RBA board was briefed on a number of matters following the release of the June quarter data.
RBA members noted stronger growth in the domestic economy, coupled with increased business investment and household consumption.

In the lates ABS statistics below there has been a significant lift in GDP growth for the latest quarter.

“Members noted that household incomes continue to be supported by relatively favourable conditions in the labor market”.

Members were also brief on the housing market, which remains somewhat subdued. Mortgage interest rates are about 0.5 per cent below their 15-year average, however housing activity is expected to remain slow in the near term.

The RBA reaffirmed its view that interest rates should remain “a little below average”.

The RBA board meets again in three weeks.