CANBERRA: Australia’s central bank expects to see solid employment growth ahead as the economy gradually picks up, while noting risks from housing debt outpacing household income. In minutes of this month’s policy meeting, where interest rates were left unchanged, the Reserve Bank of Australia gave no signal policy was set to change any time soon.
The RBA’s board again highlighted the cloud of high household debt hanging over an economy otherwise showing positive signs on employment and investment. The currency’s more than 10 percent advance this year remains a headwind and the weak wage growth story is still a drag. Policy makers are also enjoying a boost from government infrastructure spending as residential housing appears to have peaked. But they’d be somewhat perplexed by markets bringing forward the chance of a rate move to about 60 percent in June 2018, driven by a generally stronger developed world outlook.
