RBA's SoMP: Underlying inflation to remain under 2% for much of forecast period
The RBA’s quarterly Statement on Monetary Policy (SoMP), issued quarterly, has been published, with the Central Bank noting that underlying inflation is set to remain under 2% for much of its forecast period.
Key headlines - via Reuters
RBA quarterly statement repeats policy easing to help foster growth, offers no forward guidance
Uunderlying inflation to remain under 2 pct for much of forecast period, reach 2 pct by end 2018
Prospects for economy positive, but low inflation allows for "even stronger growth"
Judged risks associated with rising house prices and debt had diminished
Says AUD remains significant source of uncertainty for inflation, growth forecasts
Economic growth and inflation forecasts little changed overall
Forecasts underlying inflation 1.5 pct by end 2016, 1.5-2.5 pct end 2017, 1.5-2.5 pct end 2018
Forecasts gdp growth 2.5-3.5 pct end 2016, 2.5-3.5 pct end 2017, 3-4 pct end 2018
Says unemployment to fall only a little out to 2018, employment growth to be modest this year
Drag on gdp from falling mining investment looks to have peaked, non-mining still subdued
Dwelling investment to stay strong for next year or so, but raises risk of oversupply
GDP growth looks to have moderated in q2 as net exports added less
Says wage growth expected to remain low, rise modestly out to 2018
Increasing supply, china steel cutbacks to put downward pressure on iron ore prices
Growth in china expected to slow gradually over next few years, housing a risk
Brexit to have limited effect on Australia's major trading partners
Author
Ivan Delgado
Independent Analyst
Established in the Asian continent since 2009, Ivan studied a degree in Business at the University Pompeu Fabra (Barcelona), while also earning a postgraduate degree in Business Administration.
