Following are the key headlines from the December RBA monetary policy statement (via Reuters):
Outlook for the global economy is reasonable but risks tilted to the downside.
Rates to remain low for extended period.
Sees inflation close to 2% in 2020 and 2021.
Prepared to ease monetary policy further if needed.
Rate cuts supporting employment and income growth.
Pick up in wages would be welcome development.
Weak household income growth is weighing on spending.
Risks to global economy have lessened recently.
Lower cash rate has put downward pressure of A$.
Australian economy appears to have reached a gentle turning point.
Unemployment to fall to a little below 5% in 2020, 2021.
Low rates, tax cuts, infrastructure spending, upswing in housing prices and a brighter resource sector outlook should all support growth.
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