RBA tweak forecasts in SOMP

The RBA’s quarterly Statement on Monetary Policy (available here) only marginally tweaks their forecasts for GDP and inflation. GDP growth is revised a little higher for the year ending June 2014, while inflation is revised very slightly lower. Forecasts further out into coming years remained unchanged.


Year ending
Previous estimates in brackets, where different
Jun-14 Dec-14 Jun-15 Dec-15
GDP 3 (2.75) 2.75 2.25-3.25 2.75-4.25
CPI 3 (3.25) 2.75 2.5-3.5 2-3
Core Inflation 2.75 (3) 2.50 2.25-3.25 2-3

The report gives no sign that the RBA are reconsidering their stance on policy. Indeed “the Board’s view is that the current accommodative monetary policy setting is likely to be appropriate for some time yet.”

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