RBA: Main domestic uncertainty remains around household spending

Following are the key headlines from the January RBA monetary policy statement (via Reuters):

Low rates supporting the economy.

Progress on unemployment, inflation expected to be gradual.

Central scenario for GDP growth to average around 3 pct this year.

Central scenario for GDP growth to slow in 2020 due to weaker resource exports.

Inflation remains low and stable.

 Inflation to pick up gradually.

Household consumption remains a source of uncertainty.

Central scenario for inflation 2 percent in 2019, and 2.25 pct in 2020.

Main domestic uncertainty remains around household spending, effect of falling house prices.

Labour market remains strong.

GDP growth in September quarter was weaker than expected.

Consumption data have been volatile.

Further fall in unemployment rate to 4.75 pct expected.

Growth in household income expected to pick up and support spending.

Wage growth to pick up gradually over time.

Global economy slowed in second half of 2018, downside risks have increased.

Credit conditions for some borrowers are tighter than they have been.

Seeing some signs of slowdown in global trade, partly stemming from trade tensions.

Chinese growth has continued to slow.