RBA minutes warn growth may wobble in 2013
The minutes from the Reserve Bank of Australia's (RBA) February meeting warn that growth, which is already slightly below trend, may dip further this year.
Published today, the minutes said there were "few indications" that non-mining investment was about to pick up – a concern for many policy-makers at the central bank as mining investment is expected to peak this year. Fiscal consolidation and the strong Australian dollar were additional brakes on growth, which the RBA predicted would run at 2.5% in 2013.
However, despite holding rates at 3% at the meeting, the RBA said there was room for further rate cuts should they be required, as the inflation outlook remained subdued.
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