RBA says period of stability in interest rates lies ahead: April minutes

The Reserve Bank of Australia board has noted the most prudent course ahead was likely to be a period of stability in interest rates.

Members observed housing market conditions remained strong, with housing prices rising in March to be 10.5% higher over the year on a nationwide basis.

They also noted that dwelling investment had increased moderately in the December quarter, with a pick-up in renovation activity and that the high level of dwelling approvals in recent months foreshadowed a strong expansion in dwelling investment.

The April meeting minutes also noted financial markets and money market rates in Australia continued to imply that the cash rate was expected to remain unchanged over the remainder of the year.

Members began their discussion of the domestic economy acknowledging a range of indicators of labour demand suggested a modest improvement in prospects for employment, although the unemployment rate was still expected to edge higher for a time.