Australia central bank signaled less confidence in the outlook for fatter pay packets, despite faster full-time hiring, suggesting interest rates may remain lower for longer, in minutes of its November board meeting.
There was “considerable uncertainty” around when and how quickly wage pressures might emerge and about how much these would add to inflationary pressure.
More positively, forward indicators “suggested there were more upside risks” to the non-mining investment forecast than there had been for some time.
The labor market’s recovery since late 2016 “had been stronger than expected,” including in the mining powerhouses of Queensland and Western Australia, suggesting the adjustment to the downturn in resource investment “was nearing completion.
The Australian dollar fell to 75.43 U.S. cents at 12:20 p.m. in Sydney, compared with 75.58 cents before the report.
Source : Bloomberg