RBA: To take further steps in process of normalising monetary conditions over months ahead

Following are the key headlines from the August RBA monetary policy statement, via Reuters, as presented by Governor Phillip Lowe.

Board expects to take further steps in the process of normalising monetary conditions over the months ahead.

Not on a pre-set path.

Global factors explain much of the increase in inflation, but domestic factors are also playing a role.

Board committed to doing what is necessary to ensure inflation returns to target over time.

There are widespread upward pressures on prices from strong demand, a tight labour market and capacity constraints in some sectors of the economy.

Rate increase a further step in the normalisation of monetary conditions.

Inflation is expected to peak later this year and then decline back towards the 2–3 percent range.

Key source of uncertainty continues to be the behaviour of household spending.

Bank's central forecast is for cpi inflation to be around 7¾ per cent over 2022, a little above 4 per cent over 2023 and around 3 per cent over 2024.

Labour market remains tighter than it has been for many years.

Economy is expected to continue to grow strongly this year, with the pace of growth then slowing.

Some increase in unemployment is expected as economic growth slows.

Bank's central forecast is for GDP growth of 3¼ per cent over 2022 and 1¾ per cent in each of the following two years.

Share: Feed news

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 assets. 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 Open Markets 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. The views and opinions expressed in this article are those of the authors and do not necessarily reflect the official policy or position of FXStreet nor its advertisers. The author will not be held responsible for information that is found at the end of links posted on this page.

If not otherwise explicitly mentioned in the body of the article, at the time of writing, the author has no position in any stock mentioned in this article and no business relationship with any company mentioned. The author has not received compensation for writing this article, other than from FXStreet.

FXStreet and the author do not provide personalized recommendations. The author makes no representations as to the accuracy, completeness, or suitability of this information. FXStreet and the author will not be liable for any errors, omissions or any losses, injuries or damages arising from this information and its display or use. Errors and omissions excepted.

The author and FXStreet are not registered investment advisors and nothing in this article is intended to be investment advice.