Finally, and very significantly, the BRICS central banks have, for the first time, conducted a test run of the CRA with an actual transfer of funds. This exercise commenced on 3 July and was completed successfully today.
This is the result of faster growth in productivity in manufacturing than in services, as well as globalisation. This long-term trend is clearly evident in the Australian data, but over recent years, as the Australian dollar has appreciated, the decline in the relative retail price of manufactured goods1 – many of which are imported – has been particularly pronounced (Graph 2).