The RBA’s quarterly Statement on Monetary Policy (SoMP) has been published, with the Central Bank still seeing reasonable prospects for continued growth in the economy, adding that no material changes to GDP or inflation forecasts.
Key headlines – via Reuters
Says makes no material changes to gdp or inflation forecasts
Repeats low inflation may provide scope for easier policy if needed
Sees reasonable prospects for continued growth in the economy
AUD has been adjusting to lower commodity prices, supporting service exports
A$ has been adjusting to lower commodity prices, supporting service exports
Cuts unemployment forecast, employment growth strong enough to reduce jobless rate further
Notable improvement in employment over past three months not expected at time of last somp
Strong service sector growth, subdued wages supporting labour demand
Sees gdp growth at 2.5 pct end 2015, 2.5-3.5 pct end 2016 and end 2017, 3-4 pct to end june 2018
Sees underling inflation at 2 pct to june 2016, 2-3 pct right out to end june 2018
Pace of gdp growth in december qtr expected to have been below average
Pick up in consumption is being sustained, liaison suggests retail sales improved over xmas period
Drag on gdp from mining investment still expected to peak in 2015/16, non-mining subdued for now
Conditions in housing market have eased, growth in investor loans has declined
China remains a key uncertainty, risk of capital flight could limit scope for monetary easing
(Market News Provided by FXstreet)