RBA Minutes: High household debt levels warrant careful attention

The minutes of the Reserve Bank of Australia (RBA) March meeting expressed concerns regarding the household debt and stressed the need for faster wage growth. 

Key points (Source: Reuters)

• High household debt levels added to uncertainty over consumption, warranted careful attention
• Low rates playing a part in lowering unemployment, lifting inflation
• Repeats further progress on policy goals likely to be only gradual
• GDP growth expected to exceed potential growth in 2018
• CPI inflation expected to rise to a little above 2 pct this year
• Repeats rising a$ would slow pick up in economic growth, inflation
• AUD trade-weighted index still within range of past couple of years
• Strong employment had not yet led to a "Definitive pick-up" in wages growth
• Board saw some upside risks to forecasts for non-mining business investment
• Housing markets in Sydney and Melbourne had slowed, stable elsewhere
• Tighter mortgage lending rules had helped contain housing risks
• Expiry of interest only loans to pressure some borrowers, but overall impact limited
• Risks to Australia and the global economy would increase if countries responded to US Tariffs
• Global financial conditions accommodative despite higher yields, market volatility