At his last RBA board meeting, retiring governor Glenn Stevens said recent data suggested overall growth in Australia was continuing, despite a very large decline in business investment, helped by growth in other areas of domestic demand and exports.
Labour market indicators continued to be mixed, but suggested continued expansion in employment in the near-term.
''Inflation remains quite low. Given very subdued growth in labour costs and very low cost pressures elsewhere in the world, this is expected to remain the case for some time.''
Low interest rates had been supporting domestic demand and the lower exchange rate since 2013 was helping the traded sector, he said.
Financial institutions were in a position to lend for worthwhile purposes.
''These factors are all assisting the economy to make the necessary economic adjustments, though an appreciating exchange rate could complicate this.''
Supervisory measures had strengthened lending standards in the housing market. Separately, some lenders were also taking a more cautious attitude to lending in certain segments, Mr Stevens said.
The best available information suggested dwelling prices overall had risen moderately over the past year and growth in lending for housing purposes had slowed.
Considerable supply of apartments was scheduled to come on stream over the next couple of years, particularly in the eastern capital cities, he said.
