SYDNEY (Reuters) - An Australian central banker said on Wednesday the bank's views on the domestic economy had shifted after retail sales and consumption proved weaker than expected, prompting a downgrade in growth forecasts.
The Reserve Bank of Australia's (RBA) head of economic analysis, Alexandra Heath, said the strength of the labour market stood in contrast with consumption and some other activity indicators and it was not clear how that would resolved.
Speaking at a forecasting conference, Heath said the bank was confident that the corner had been turned on wages and that growth would pick up over time. Such growth would help offset any drag on wealth from falling home prices.
(Reporting by Wayne Cole; Editing by Tom Brown)
