The Reserve Bank of Australia (RBA) said that global uncertainty remained high, but financial markets were relatively stable with rising bond yields and equity prices, according to the central bank's minutes of the monetary policy board meeting posted Tuesday.
RBA noted that capacity pressures have increased, with tight labor markets and high business utilization, but household consumption and business investment remained resilient, supported by higher incomes and demand.
The central bank said it revised economic growth forecasts upwards due to stronger consumption and investment, and unemployment surprisingly remaining lower by historical standards.
According to the RBA, inflation pressures were seen as persistent and likely to remain elevated without action, and aggregate demand was judged to exceed supply capacity, adding to price pressures.
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