RBA: Further improvement in labor market is needed to meet inflation target

Following are the key headlines from the May RBA monetary policy statement (via Reuters):

Still sees further spare capacity in the economy.

Notes that March quarter inflation is noticeably lower than expected.

Further improvement in labor market is needed to meet inflation target.

Domestic uncertainty remains around household spending, falling house prices.

Conditions remain soft in the housing market.

Expects economy to grow at 2.75% in 2019, 2020.

Sees underlying inflation at 1.75% in 2019, at 2% in 2020.

AUD is at the lower end of its narrow range.