Australian Federal Reserve (Reserve Bank of Australia) Tuesday (17th) May minutes of the monetary policy meeting, Australia Federal Reserve says, if current conditions continue, at some point in the future need to raise interest rates to control inflation, will seriously assess the prospects for economic growth and inflation in the next few years the core inflation rate could rise to the top of the target range.
Australian Federal Reserve said, maintaining the strong prospects for growth, the unemployment rate has decreased, high household savings will help curb inflation, or will raise interest rates, policies based on the overall economic situation, may raise interest rates to control inflation risks in the future. Australia fed said tight job market, and home of cautious mood change is the main inflation uncertainty, or core inflation has bottomed.
Australia fed says stronger Australian dollar led to a certain extent fared worse, foreign central banks to buy leading Australian dollar exchange rate rise. Weak housing market, other data is slightly biased towards optimism, economic situation or in the first quarter of contraction, formulation of policy must be aimed at the overall economy needs.
Australian Federal Reserve also said that effects of flooding not likely result in first-quarter GDP growth, pay close attention to short-term effects of the disaster, caused by flood higher than expected inflation in the first quarter.
