7 Feb 2014
RBA upgrades growth and inflation
FXStreet (Bali) - Friday’s RBA statement on monetary policy was just officially released, despite most of the RBA research, forecasts and conclusions were made available earlier on Tuesday when the RBA board met to decide the next course of action in terms of monetary policy.
Highlights from today's RB SMP
Due to the decline in the Aussie, the RBA has upgraded both growth and inflation projections. The June 2014 GDP growth forecast for Australia is now at 2.75% vs 2.5% in Nov, while inflation was been revised higher to 3%. The RBA state that with growth picking up and inflationary pressures increasing, it was no longer possible to retain the easing bias.
The statement still observes weak labor conditions and expectations for further declines in mining investment, which should be the main setback to growth expectations.
As per the outlook on rates, the RBA said a period of stability in rates is likely given current outlook on prices, activity.
Highlights from today's RB SMP
Due to the decline in the Aussie, the RBA has upgraded both growth and inflation projections. The June 2014 GDP growth forecast for Australia is now at 2.75% vs 2.5% in Nov, while inflation was been revised higher to 3%. The RBA state that with growth picking up and inflationary pressures increasing, it was no longer possible to retain the easing bias.
The statement still observes weak labor conditions and expectations for further declines in mining investment, which should be the main setback to growth expectations.
As per the outlook on rates, the RBA said a period of stability in rates is likely given current outlook on prices, activity.