Australia’s Central Bank Reaffirms Growth Is Set to ‘Increase Gradually’

The Reserve Bank of Australia says economic conditions at home and abroad “had been more positive since 2016,” according to minutes of this month’s policy meeting where interest rates were left unchanged.

Main Takeaways

  • National accounts indicated private non-mining business investment increased in the June quarter to be almost 10% higher than at the start of 2016
  • Public consumption had “increased solidly” and new public investment had risen “very strongly” across most states
  • Retail electricity prices expected to “increase significantly” in September quarter and business liaison suggested a number of firms were largely absorbing increases in energy costs into margins rather than passing them through to final prices
  • Residential construction appeared to have plateaued, with dwelling investment largely unchanged in the June quarter. The pipeline of work already approved or underway was expected to continue supporting dwelling investment around current levels over the subsequent year or so
  • Australian dollar bought 78.39 U.S. cents at 11:35 a.m. in Sydney, from 78.45 cents before report

State of Play