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

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.

(Market News Provided by FXstreet)

By FXOpen