The RBA MPS cuts 2013 GDP outlook

FXstreet.com (Barcelona) - The RBA Monetary Policy Statement has cut its 2013 GDP outlook on weaker mining and fiscal tightening measures, with estimates for 2013 now at 2.25-3.25% from 2.75-3.25%. The AUD sold-off minutes before the publication in what is a very suspicious move, normally caused by an early leak. RBA:"Over the year to June 2013, GDP growth is expected to be a little below 2.75% before gradually picking up to just under 3% over 2014." RBA projections suggest the labour market will experience modest growth and job creation is likely to tick a "little higher". On the trade balance domain, the RBA sees a -15% trade decline by year-end, expecting a gradual fall in bulk commodity prices overtime. Increase in demand poses challenges for the inflation outlook, the RBA say. According to Shane Wright, Economics editor for The West Australian newspaper, "The RBA growth forecasts predicated on no further cuts in the cash rate..."

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