the Australian labour market remains strong.

there has been a significant increase in employment and the unemployment rate is at 4.9%

the vacancy rate remains high and there are reports of skills shortages in some areas.

the stronger labour market has led to some pick-up in wages growth, which is a welcome development.

continued improvement in the labour market is expected to see some further lift in wages growth over time, although this is still expected to be a gradual process.

GDP data paint a softer picture of the economy than do the labour market data

outlook for the global economy remains reasonable

growth has slowed and downside risks have increased

growth in international trade has declined

investment intentions have softened in a number of countries

global financial conditions remain accommodative and have eased recently

risk premiums remain low

equity markets have also risen and are being supported by growth in corporate earnings

the Australian dollar has remained within its narrow range of recent times