Economics
RBA Sees Positive Economic Data Outweighing CPI for Now
- Higher Aussie dollar could complicate economy’s adjustment
- Mining investment about 4% of GDP, from 2012 peak of 8%
Commuters leave and arrive at Flinders Street Station in Melbourne. The RBA is trying to orchestrate a transition away from mining investment to other industries in the economy, using low rates and a weaker dollar as a tailwind for industries.
Photographer: Michael Dodge/Getty ImagesThis article is for subscribers only.
Australia’s central bank hailed recent positive economic data while reiterating inflation would remain low, in minutes of its June meeting where interest rates were left at 1.75 percent and no policy guidance was provided.
The expansion “over the year had increased to be a bit above estimates of potential growth, reflecting a stronger expansion in non-mining activity,” the Reserve Bank of Australia said Tuesday in the minutes. “Nevertheless, inflation was expected to remain low for some time.”