The RBA said risk to the global outlook are still skewed to the downside. "Global growth is forecast to be a little below average for a time" the RBA said. They add that "the uncertainty over the course of US fiscal policy is also weighing on sentiment at present." In Asia, the RBA sees growth dampened "by the more moderate Chinese expansion and the weakness in Europe."
RBA sees headline CPI reaching levels above 3% briefly. As stated: "Partly as a result of that [carbon price affecting consumer prices] headline CPI inflation will rise above 3 per cent briefly." Although in general terms, RBA sees inflation consistent with medium term target. RBA adds that "a continuation of moderate wage outcomes and improved productivity performance will be needed to keep inflation low." On investment, "generally outside the resources sector, remains relatively subdued" RBA notes.
RBA expanded: "Over the past year, monetary policy has become more accommodative. There are signs of easier conditions starting to have some of the expected effects, though the exchange rate remains higher than might have been expected, given the observed decline in export prices and the weaker global outlook. While the full effects of earlier measures are yet to be observed, the Board judged at today's meeting that a further easing in the stance of monetary policy was appropriate now. This will help to foster sustainable growth in demand and inflation outcomes consistent with the target over time."
Information on these pages contains forward-looking statements that involve risks and uncertainties. Markets and instruments profiled on this page are for informational purposes only and should not in any way come across as a recommendation to buy or sell in these securities. You should do your own thorough research before making any investment decisions. FXStreet does not in any way guarantee that this information is free from mistakes, errors, or material misstatements. It also does not guarantee that this information is of a timely nature. Investing in Forex involves a great deal of risk, including the loss of all or a portion of your investment, as well as emotional distress. All risks, losses and costs associated with investing, including total loss of principal, are your responsibility.