Members began their discussion of international economic developments by noting that recent data had confirmed that output growth in most advanced economies had troughed and that upside risks might be crystallising in some regions. Forecasters had revised up their expectations for growth in advanced economies for the current year, reflecting stronger-than-expected data for the March quarter amid improving global business sentiment. Nonetheless, restrictive monetary policy was still weighing on demand in most advanced economies and conditions in labour markets were also easing, although generally they remained tight. ... (full story)

The RBA Board judged the case for holding rates steady stronger than for hiking. • Needed to be vigilant to upside risks to inflation, data suggested upside risk for may CPI. • Economic uncertainty meant it was difficult to rule in or out future changes in policy. • Recent data not sufficient to change outlook for inflation returning to target by 2026. • Judged still possible to bring inflation to target while keeping employment gains. • Board saw downside risks to the labour market, vacancy rates pointed to weakness. • Unemployment rate could rise quickly as it had done in the past. • Continued rapid rise in ... (full story)