Reserve Bank of Australia Statement on Monetary Policy (SoMP)
- Judged holding policy steady consistent with growth, inflation targets
- An appreciating AUD could complicate economy's transition
- Cuts GDP forecast for June 2017 by 1 ppt to 1.5-2.5 pct, December unchanged at 2.5-3.5 pct, June 2019 2.75-3.75 pct
- Forecasts underlying inflation at 1.75 pct June 2017, 1.5-2.5 pct out to December 2018, 2-3 pct by June 2019
- RBA includes new forecasts for unemployment, sees 5.75 pct mid-2017 and 5-6 pct out to mid-2019
- Says economy unlikely to grow fast enough to pull jobless rate down
- Says GDP growth looks to have rebounded in Q4, weakness in q3 was temporary
- Says subdued growth in household income is expected to constrain consumption growth
- Says surveys, liaison with firms suggest wage growth will not slow any further
- Says inflation shows signs of having stabilised, to increase gradually over time
- Forecasts assume recent jump in terms of trade, commodity prices will unwind over next two years
- Says expansion in LNG exports to add 0.5 ppt to GDP in both 2017 and 2018
- Global economy entered 2017 with more momentum than earlier expected
- China growth stronger than expected, high and rising debt a medium term risk
- Says significant uncertainty around policy in the united states
- Risk US protectionist policies could harm global growth
more to come
quick Headlines via Reuters
Full text:
Statement on Monetary Policy
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- The SoMP is issued four times a year
- Sets out the Bank's assessment of current economic conditions (domestic & international), and updates the outlook for Australian inflation and GDP growth
Earlier this week from the RBA
- RBA announce rates remain on hold
- RBA decision today (rates left unchanged) - analyst responses
- RBA's Lowe says Australian economy is in decent shape, inflation will pick up gradually
