Overall conditions in the housing market have eased compared to last year despite recent strengthening in Sydney and Melbourne, the Reserve Bank of Australia said in its Statement on Monetary Policy on Friday.
The bank noted that housing credit growth was lower than a year ago. Tighter lending standards have been reflected in the declining share of interest-only loans over the past year.
The central bank observed that downside risks to growth in the major trading partner China in the near term appear to have diminished.
The forecasts for GDP growth were similar to those presented in the August statement. Growth is expected to be around 2.5-3.5 percent over the year to June 2017, and then increase to around 3-4 percent over the year to December 2018.
The bank forecast growth of 2.5-3.5 percent to June 2017.
Headline inflation was revised higher due to rising tobacco prices. Inflation is expected to remain between 1.5 percent and 2.5 percent until December 2018.
With the forecasts unchanged there is little doubt that the Bank is unlikely to be initiating a policy change any time soon, Bill Evans at Westpac said. However the tone of the Statement seems to support the view that if rates are to move in 2017 it will be to the downside.
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April 24, 2026 15:15 ET Economics news flow was relatively light this week even as the conflict in the Middle East continued, raising concerns for policymakers. In the U.S., spending data, initial jobless claims and pending home sales were the highlights. Business confidence in the biggest euro area economy was in focus in Europe. Inflation data from Japan gained attention in Asia.