RBA statement on monetary policy: expansion in resource exports

RBA says in its 78 pages statement:

Growth in economic activity in Australia's major trading partners has remained a little below average over the first half of 2016. Despite this, commodity prices overall have increased since the beginning of the year, partly because of reductions in supply by some high-cost producers of commodities, including iron ore and coal. The outlook for overall growth in Australia's major trading partners and the outlook for the terms of trade are little changed from three months ago. The terms of trade are forecast to remain close to current levels over the next couple of years. This is around 35 per cent lower than their peak in late 2011, but still well above levels that prevailed prior to the mining boom.

In China, subdued growth in private sector investment has been only partially offset by additional policy measures to support demand.

In Australia, low interest rates and the depreciation of the Australian dollar exchange rate since early 2013 are continuing to support the rebalancing of economic activity towards non-resource sectors. Growth in GDP was stronger than expected in the March quarter, in large part because of a substantial rise in resource exports, which were boosted by unusually favourable weather conditions. More recent data suggest that real GDP growth was more moderate in the June quarter, as expected. The unemployment rate has remained at around 5¾ per cent over 2016, which is around ½ percentage point lower than a year or so ago.