Here’s what the minutes said in relation to the global economy: In considering the stance of monetary policy, members viewed the near-term prospects for global growth as being more positive, although recognised the risks from policy uncertainty in the medium term. Stronger growth had contributed to higher inflationary pressures, including higher commodity prices, which had implications for the future stance of monetary policy in the advanced economies in coming years. Long-term bond yields had moved higher in many advanced economies.
And, as a result of that optimism, what was said in relation to the Australian economy: Domestically, the economy was continuing its transition following the end of the mining investment boom. The fall in GDP in the September quarter had reflected some temporary factors. Looking forward, resource exports were expected to make a significant contribution to growth over the forecast period and the drag on growth from falling mining investment was expected to wane. Essentially, the bank’s optimism towards the near-term outlook has been driven by an improvement in the global economy, led by the United States and China, the world’s largest individual economies. That, in turn, is expected to flow through to the Australian economy, helping to lift growth and inflation in the years ahead.
