Tuesday, July 16, 2019

Reserve Bank cautious on apartment glut; raises plight of disadvantaged Indigenous Australians


The Reserve Bank has highlighted the plight of disadvantaged indigenous Australians and sustained living standards that are well below the rest of society.


The observations came after the central bank held it’s July board meeting in Darwin for the first time since 1968 where it decided the cut the cash rate for the second consecutive month to a new record low of one percent.

“Members observed that the broad statistics on the labour market for the Northern Territory masked the relative disadvantage of the Indigenous population,” according to the minutes from the meeting.

“Indigenous Australians were less likely to complete school and more likely to experience poor health.

“These measures of Indigenous disadvantage were particularly acute in remote locations where it is more difficult to deliver services.”

While the Northern Territory’s unemployment rate is below the national average,, the minutes say that employment has fallen due to a downturn in the mining cycle.

“This had been accompanied by large flows of people moving to other parts of the country,” the minutes say.

In continuing concerns about the global economy, the minutes say risks from trade tensions between the US and China “remain high”.

The minutes acknowledge that risks to global growth and subdued inflation have increased expectations that global central banks will easy monetary police.

The US Federal Reserve is on track to cut rates in the coming months and the Reserve Bank says markets have priced in a further easing.

Some economists are prediction an eventual cash rates next year as low as 0.5 percent.

“The Board will .. adjust monetary policy off needed to support sustainable growth in the economy, “ the minutes say.

The RBA’s caution comes as day after China’s economic growth in the three months to June came in at 6.2 percent, the slower pace one of the result of the its trade impasse with the United States.

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