The RBA Minutes for the month of March were released and we have seen a muted response from the market in the Aussie thus far.
The main takeaways are:
- The rising dollar complicates economic transition,
- House Prices are strong in Sydney and Melbourne,
- The GDP 1.1% result was above expectations for the Dec quarter,
- Non-mining investment had risen in the Dec quarter,
- Household Consumption growth picked up, steady policy is consistent and economic growth to accelerate over next to years gradually,
- Slow growth in incomes could restrain consumption given high debt levels,
- Soft GDP wage measure suggests very little labour cost pressure in economy,
- Wages growth, underlying inflation expected to rise only gradually,
- Still difficult to assess momentum in labour market...