Key Points from RBA meeting minutes 4 October 2016
– Chinese demand for commodities has been resilient
– Reduction in the supply of commodities has contributed to an increase in commodity prices since the turn of the year
– GDP growth was expected to decline somewhat in the near term before rising gradually
– Continued uncertainty about the momentum of labour market. Part-time work accounts for all of the increase in employment over the year to date. Growth in employee earnings has stabilised.
Consistent with less downward pressure on earnings associated with the movement of labour from mining to the non-mining sectors of the economy.
– Members assessed that while the risks associated with rapid growth in housing prices and lending had receded over the past year, developments would need to be monitored closely
– Since the September meeting, the data on the domestic economy had been broadly consistent with the forecasts presented in the August Statement on Monetary Policy, though an appreciating
exchange rate could complicate this
– Members noted that data on CPI inflation for the September quarter and an update of the forecasts would be available at the next meeting. This would provide an opportunity to consider the economic outlook, assess the effects of previous
reductions in the cash rate and review conditions in the labour and housing markets
– Meeting Minutes