8 May 2015
RBA cuts growth, inflation but silent on rates
FXStreet (Bali) - The RBA Statement on Monetary Policy has been published, with the Central Bank cutting its growth and inflation projections, while remaining silent on the rates outlook.
Key headlines
Latest rate cut to reinforce "encouraging trends" in consumer demand
Will assess outlook, adjust policy as needed for growth, inflation
A$ not offering enough support to economy, further fall seen likely and necessary
Economy to grow below trend for a little longer than expected, pick up in 2016/17
RBA trims gdp forecasts around 0.25 ppt, 2015 yr avg seen at 2.25 pct, 2016 at 2.5-3.5 pct
Underlying inflation seen 2.5 pct at end 2015, 1.75-2.75 pct for end 2016 and mid 2017
Non-mining investment not likely to pick up in coming quarters as had been expected
Unemployment rate seen peaking at 6.5 pct in mid-2016, stay elevated for longer
Spare capacity in labour market to last longer than previously thought
Expects wage growth to stay contained, but not fall below inflation
Home price growth strong in sydney but slowing elsewhere, credit has levelled out
Key headlines
Latest rate cut to reinforce "encouraging trends" in consumer demand
Will assess outlook, adjust policy as needed for growth, inflation
A$ not offering enough support to economy, further fall seen likely and necessary
Economy to grow below trend for a little longer than expected, pick up in 2016/17
RBA trims gdp forecasts around 0.25 ppt, 2015 yr avg seen at 2.25 pct, 2016 at 2.5-3.5 pct
Underlying inflation seen 2.5 pct at end 2015, 1.75-2.75 pct for end 2016 and mid 2017
Non-mining investment not likely to pick up in coming quarters as had been expected
Unemployment rate seen peaking at 6.5 pct in mid-2016, stay elevated for longer
Spare capacity in labour market to last longer than previously thought
Expects wage growth to stay contained, but not fall below inflation
Home price growth strong in sydney but slowing elsewhere, credit has levelled out