Following are the key headlines from the November RBA monetary policy statement (via Reuters):
To ease policy if needed to support sustainable growth
Will monitor developments in labour markets
Rates to remain low for extended period
Outlook for the australian economy is little changed from three months ago
Signs of a turnaround in housing market, especially in sydney and melbourne
New home construction has weakened
A gentle turning point appears to have been reached
Central scenario for underlying inflation to be close to 2 pct in 2020 and 2021
Sees underlying inflation to be a little above 2 pct in 2021
Central scenario for economy to grow by around 2 ¼ per cent this year and then for growth gradually to pick up to around 3 per cent in 2021
Main domestic uncertainty continues to be the outlook for consumption
Sustained period of only modest increases in household disposable income continuing to weigh on consumer spending
Outlook for the global economy remains reasonable, the risks are tilted to the downside.
Recent outcomes suggest that the australian economy can sustain lower rates of unemployment and underemployment
Rba points to global developments, spare capacity in the economy
Global expectations of further monetary easing have generally been scaled back over the past month and financial market sentiment has improved a little.
Australian dollar is at the lower end of its range over recent times
Wages growth remains subdued and is expected to remain at around its current rate for some time yet
A further gradual lift in wages growth would be a welcome development
Unemployment to fall to a little below 5% in 2021
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