Reserve Bank of Australia monetary policy announcement for the March 2019 meeting

Headlines via Reuters:

  • RBA says low rates supporting economy
  • says progress on unemployment, inflation expected to be gradual
  • says inflation remains low and stable
  • main uncertainty around outlook for household spending, effect of falling housing prices
  • underlying inflation to pick up gradually
  • central scenario for underlying inflation 2 percent in 2019, and 2.25 pct in 2020
  • housing markets in Sydney, Melbourne going through period of adjustment
  • labour market remains strong
  • indicators suggest economy slowed over second half 2018
  • further fall in unemployment rate to 4.75 pct expected
  • wage growth to pick up gradually over time
  • central scenario for economy to grow around 3 pct this year
  • growth outlook supported by rising business investment, public spending on infrastructure
  • growth in household income expected to pick up, support spending
  • credit conditions for some borrowers have tightened
  • outlook for global growth remains reasonable, downside risks have increased
  • trade tensions remain a sense of domestic uncertainty

Familiar themes from the RBA in that lot.

Full text:

RBA plodding along its familiar path. Data is deteriorating but the Bank is comfortable. Inflation is lagging behind target, but the RBA does expect it to pick up. Like they have been for 3 years or so and it hasn't.

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