SYDNEY, May 18 (Xinhua) -- The Reserve Bank of Australia (RBA) has welcomed the impact COVID-19 vaccinations have had on the global economy, which it believes will rebound solidly during the next 18 months.

The minutes of RBA's May Monetary Policy Meeting issued on Tuesday noted a surge in global demand for goods and a robust recovery in production in China and elsewhere had contributed to a sharp increase in the prices of commodities and other inputs.

In turning to the domestic outlook, members noted that the Australian economy was transitioning from recovery to expansion quicker than previous downturns.

Gross domestic product (GDP) was expected to have returned to its pre-pandemic level in the March quarter and there were more people employed in March than before the onset of the pandemic.

In response to the stronger starting point and improved outlook further out, the forecast for GDP under the baseline scenario was revised upwards.

Meanwhile, conditions in the Australian housing market continued to strengthen with prices increasing throughout April.

Rental markets tightened in recent months but conditions remained uneven. Rents were increasing at a stronger pace for houses than for units, and in regional areas compared with capital cities.

Despite the strong economic recovery, the recent consumer price index (CPI) confirmed that inflation pressures remained subdued.

The forecast for inflation was revised upwards slightly, in line with the stronger outlook for activity, but inflation was still expected to increase only gradually. Enditem

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