Members of the Reserve Bank of Australia’s monetary policy board said that the country’s output growth should continue to strengthen over the next two years, minutes from the bank’s December 1 meeting revealed on Tuesday.
The members added that the Australian dollar was continuing to adjust to the recent decline in commodity prices.
“There continued to be evidence that very low interest rates were supporting growth in household consumption and dwelling investment, and the exchange rate was adjusting to the significant declines in key commodity prices and boosting demand for domestic production. This had translated into stronger employment growth and was consistent with surveys suggesting that business conditions were above average,” the minutes said.
And should the need arise, the accommodating inflation forecast would allow for further easing measures, the members added.
At the meeting, the bank maintained its record low benchmark cash rate at 2.00 percent for the seventh straight meeting.
The bank had lowered the rates by 25 basis points each in February and May.
“The board would continue to assess the outlook, and hence whether the current stance of policy would most effectively foster sustainable growth and inflation consistent with the target,” the minutes said.
Also on Tuesday:
. House prices in Australia were up 2.0 percent on quarter in the third quarter of 2015, the Australian Bureau of Statistics said – in line with forecasts and slowing from 4.7 percent in the second quarter.
The capital city residential property price indexes rose in Sydney (+3.1 percent), Melbourne (+2.9 percent), Brisbane (+1.3 percent), Adelaide (+1.2 percent), Canberra (+1.3 percent) and Hobart (+0.5) and fell in Perth (-2.4 percent) and Darwin (-0.4 percent).
On a yearly basis, house prices jumped 10.7 percent – beating expectations for 10.2 percent and up from 9.8 percent in the three months prior.
Annually, residential property prices rose in Sydney (+19.9 percent), Melbourne (+9.9 percent), Canberra (+4.0 percent), Brisbane (+3.8 percent), Adelaide (+3.5 percent) and Hobart (+1.7 percent) and fell in Perth (-3.3 percent) and Darwin (-2.0 percent).
. The total number of new motor vehicle sales in Australia was up a seasonally adjusted 1.0 percent on month in November, the Australian Bureau of Statistics said, standing at 97,696.
That follows the downwardly revised 3.7 percent contraction in October (originally -3.6 percent).
By region, South Australia had the largest monthly percentage increase (1.0 percent), followed by Queensland (0.7 percent) and Victoria (0.4 percent).
The Northern Territory saw the largest percentage decrease (1.0 percent).
On a yearly basis, sales advanced 6.0 percent after rising a downwardly revised e3.9 percent in the previous month (originally 4.2 percent).
The material has been provided by InstaForex Company – www.instaforex.com