"The abatement of those two substantial headwinds suggests that there is a reasonable prospect of sustaining growth in economic activity, which would support a further gradual decline in the unemployment rate".
- Christopher Kent, RBA Governor
In a speech delivered on Tuesday morning in Sydney, Chris Kent noted that recent economic growth had been stronger than the Reserve Bank had anticipated. The upbeat economic data implies wages growth after six consecutive quarters of decline as well as growth in a key measure of wages in the national accounts. Moreover, Mr Kent has released a positive outlook for the economy, outlining that the hard time of the slump in mining sector is finally ended.
Also, RBA Governor added, the developments in China would be highly important since the Asian producer remains a major producer and consumer of many Australia's commodity products. "If commodity prices were to stabilise around current levels, that would be a marked change from recent years. Also, the end of the fall in mining investment is coming into view. The abatement of those two substantial headwinds suggests that there is a reasonable prospect of sustaining growth in economic activity, which would support a further gradual decline in the unemployment rate. There is also a good prospect that the growth in wages and the rate of inflation will gradually lift over the period ahead" he added.
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