-
Policy
Policy
Exclusive interviews with leading policymakers that convey the true policy message that impacts markets.
LATEST FROM POLICY: -
EM Policy
EM Policy
Exclusive interviews with leading policymakers that convey the true policy message that impacts markets.
LATEST FROM EM POLICY: -
G10 Markets
G10 Markets
Real-time insight on key fixed income and fx markets.
Launch MNI PodcastsFixed IncomeFI Markets AnalysisCentral Bank PreviewsFI PiFixed Income Technical AnalysisUS$ Credit Supply PipelineGilt Week AheadGlobal IssuanceEurozoneUKUSDeep DiveGlobal Issuance CalendarsEZ/UK Bond Auction CalendarEZ/UK T-bill Auction CalendarUS Treasury Auction CalendarPolitical RiskMNI Political Risk AnalysisMNI Political Risk - US Daily BriefMNI Political Risk - The week AheadElection Previews -
Emerging Markets
Emerging Markets
Real-time insight of emerging markets in CEMEA, Asia and LatAm region
-
Commodities
Commodities
Real-time insight of oil & gas markets
-
Credit
Credit
Real time insight of credit markets
-
Data
-
Global Macro
Global Macro
Actionable insight on monetary policy, balance sheet and inflation with focus on global issuance. Analysis on key political risk impacting the global markets.
Global MacroDM Central Bank PreviewsDM Central Bank ReviewsEM Central Bank PreviewsEM Central Bank ReviewsBalance Sheet AnalysisData AnalysisEurozone DataUK DataUS DataAPAC DataInflation InsightEmployment InsightGlobal IssuanceEurozoneUKUSDeep DiveGlobal Issuance Calendars EZ/UK Bond Auction Calendar EZ/UK T-bill Auction Calendar US Treasury Auction Calendar Chart Packs -
About Us
To read the full story
Sign up now for free trial access to this content.
Please enter your details below.
Why MNI
MNI is the leading provider
of intelligence and analysis on the Global Fixed Income, Foreign Exchange and Energy markets. We use an innovative combination of real-time analysis, deep fundamental research and journalism to provide unique and actionable insights for traders and investors. Our "All signal, no noise" approach drives an intelligence service that is succinct and timely, which is highly regarded by our time constrained client base.Our Head Office is in London with offices in Chicago, Washington and Beijing, as well as an on the ground presence in other major financial centres across the world.
Real-time Actionable Insight
Get the latest on Central Bank Policy and FX & FI Markets to help inform both your strategic and tactical decision-making.
Free AccessMNI POLICY: RBA Coombs: Econ Conditions Of States Converging
By Sophia Rodrigues
SYDNEY (MNI) - Conditions in the state of Western Australia, the area which
saw the largest decline in domestic demand in recent years, are now showing
signs of stabilizing and converging with economic performance in other states,
the Reserve Bank of Australia's deputy head of economic analysis department
Merylin Coombs said Wednesday.
Coombs was speaking in Broome in Western Australia on the topic, "Economic
Conditions in Australia - Some Implications for the Kimberley."
Below are the key observations we made from the speech.
--Coombs' speech centred around the improvement in economic conditions in
Western Australia, which means there is now less variation in the economic
outcomes between different states in Australia. Her comments were mainly based
on the RBA's liaison program which is used in the their assessment of
developments in the Australian economy. Overall, there was an optimistic tone to
the speech with respect to all the three key perspectives she discussed:
business investment, labour markets and housing markets.
--Coombs' briefly touched on the Australian economy, reiterating the RBA's
forecast for growth to remain a little above 3% for the next year or so, which
will further reduce spare capacity in the economy, and help a gradual increase
in wages growth and inflation. She noted that China's growth has slowed a little
but has held up despite increasing trade tensions with the U.S. Coombs' also
said that commodity prices have been higher than the RBA had expected. The RBA
continues to expect commodity prices to decline during 2019 but not to decline
as far as the lows seen in 2015-16.
--Coombs' said the combination of higher commodity prices and the need to
sustain capital expenditure has resulted in a pick-up in activity across the
resources sector in Western Australia. She pointed to the announcement of three
large replacement iron ore mines to be built in coming years and also
progression in plans for a couple of large offshore gas projects in the early
2020s, some of which is to maintain production levels. In addition, there are
prospects for future investment in gold and lighter-weight metals and
battery-related minerals due to an improved outlook for the global uptake of
electric vehicles and renewable energy. Coombs' also said there are signs of
pick-up in mineral sector activity in the Kimberley region.
--Coombs' made a case for strong population growth in the state because
that is important for "material improvement" in housing construction, adding
that prospects for such a pick-up are closely linked to the labour market
outlook.
--Employment growth has increased in Western Australia since the start of
2017 and the recent increase in job vacancies suggest further growth is to come,
Coombs said. While labour availability remains ample, there are some signs of
tightening for certain skills in mining and related sectors. The RBA is watching
reports of tight labour availability closely, as a steady decline in spare
capacity in the labour market is one of the main factors behind the forecast for
a gradual pick-up in aggregate wages growth and inflation, she said.
--MNI Sydney Bureau; tel: +61 2-9716-5467; email: sophia.rodrigues@marketnews.com
[TOPICS: MMLRB$,M$A$$$,M$L$$$,MT$$$$]
To read the full story
Sign up now for free trial access to this content.
Please enter your details below.
Why MNI
MNI is the leading provider
of intelligence and analysis on the Global Fixed Income, Foreign Exchange and Energy markets. We use an innovative combination of real-time analysis, deep fundamental research and journalism to provide unique and actionable insights for traders and investors. Our "All signal, no noise" approach drives an intelligence service that is succinct and timely, which is highly regarded by our time constrained client base.Our Head Office is in London with offices in Chicago, Washington and Beijing, as well as an on the ground presence in other major financial centres across the world.