Main Highlights of The RBA Meeting’s Minutes
September 17, 2013 in Australia & New Zealand
Review of Economic conditions of the major trading partner – Overall Average
- Overall growth of the major trading partners in the second quarter as been in line with the average of the last decade.
- China: GDP Growth in the second quarter was close to the target of 7.6%. Demand for property continued to rice but at a slower pace. Strong growth in infrastructure management.
- Japan: Economic activities were slower than expected during the second quarter but the overall growth has been relatively strong during the first 6 months of 2013.
- U.S.: The pace of the economic expansion has been moderate. Housing market strengthened further and employment has been rising moderately since the beginning of the year.
- Euro zone: After 6 quarters of negative growth the second quarter of 2013 saw a positive growth. Overall consumer and business sentiments improved slightly and unemployment levels have been steady.
- Export prices: Spot prices for iron ore had increased, consistent with further growth in Chinese steel production. Crude oil and base metals prices had also risen over the past month.
Domestic Economic Conditions of Australia – Mixed
- It’s expected that the economic growth was slightly below the trend. National account are scheduled to be released the day after the Board meeting.
- Household consumption growth appeared to have been below the average of recent years.
- Overall business investment seems to have increased, especially in buildings and structures in the mining sector. In other areas the investments have been soft.
- Exports growth remained relatively strong.
- Mining profits had increased in the June quarter owing in part to higher prices for iron ore.
- Non-mining profits had dipped in the quarter.
- Businesses still appeared averse to taking on risks associated with new investment projects.
- Iron ore exports had continued to grow strongly in the June quarter.
- Coal export volumes were also higher than the past year but coal prices had declined. M
- Rural exports remained at a high level, following generally good rainfall in recent years.
- Indicators suggested that growth of household consumption in the June quarter had been below average.
- The retail sales growth had been only modest in recent months.
- Sales of motor vehicles to households declined in July, after a strong growth in the second quarter.
- consumer sentiment had moved higher and were a little above long-run average levels.
- Housing market improved because of the lower interest rates.
- Labor market conditions remained somewhat subdued and employment had been little changed since earlier in the year, while the population had continued to expand, resulting in a decline in the employment-to-population ratio and a gradual rise in the unemployment rate.
- There were further signs that wage growth had eased over the year.
- The Australian banking system remained in a relatively sound position.