Australia economy is this year expected to grow faster than its speed limit -- estimated at 2.75 percent by Treasury -- with inflation just above the bottom of its target, the central bank said in minutes of its April policy meeting.
Reserve Bank of Australia says it's more likely the next move in the cash rate will be up rather than down.
Given lowering unemployment and returning inflation to the midpoint of its 2-3% target “was expected to be only gradual,” members agreed “there was not a strong case for a near-term adjustment in monetary policy”.
Outlook for non-mining business investment growth remained positive; forward-looking indicators suggested spare capacity in labor market would continue to fall gradually.
Weak wage growth and retail competition damping prices suggested inflation would remain low for some time.
Sydney house prices have fallen a bit under 5% from mid- 2017 peak.
Source : Bloomberg