Part 6/8:
Economic Outlook: Strengths and Challenges
Looking at the broader economic landscape, the outlook remains relatively positive. Australia enjoys low unemployment rates, which are expected to stay stable in the short term. Inflation is within the targeted range just as the last quarter's data indicates, supporting the RBA's stance that the economy remains on a steady course.
However, there are underlying concerns about productivity stagnation and high building costs—factors that could influence future economic performance. Notably, these issues also impact inflation forecasts. For instance, the monthly CPI has shown signs of potentially higher-than-expected quarterly inflation, which the RBA accounts for in its outlook.