The most important from RBA's Ellis statement

Luci Ellis, who is an assistant governor at the Reserve Bank of Australia today, has spoken mainly about the housing market and the overall performance of the Australian economy. More importantly:

• The Bank closely follows the development of the labor market
• The labor market has recovered at an incredible pace
• We are confident in the stability of the labor market
• We are still far from the desired level of unemployment, which will contribute to rising wages at a faster rate
• Poor revenue growth slows down household consumption
• Falling house prices may have an impact on the purchasing power of new cars and household appliances
• Despite the weak earnings growth, tax revenues are growing at a good pace
  The pace with which tax payments rise is higher than the rate at which revenue in the country grew over the past six years
• The growth rate of tax is supported by their faster collection
• Factors that slow down revenue growth are most likely temporary

Good comments on the labor market, but not so much about the purchasing power of households, and the latter that factors that slow down revenue that are most likely temporary are very uncertain.

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