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6 Nov 2015
RBA SoMP: Improved economic conditions, inflation forecast revised down
FXStreet (Bali) - The RBA’s quarterly Statement on Monetary Policy (SoMP) has been published, with the Central Bank trimming its inflation forecast, while being more positive on economic conditions.
Key headlines - via Reuters
Australia central bank says prospects for economy have firmed a little
Subdued inflation outlook may afford scope to ease further if needed
Cuts near term inflation forecasts by 0.5 ppt, shaves longer term gdp forecasts
Sees underlying inflation around 2 pct for most of next year, before rising to 2.5 pct
Underlying inflation forecast 1.5-2.5 pct by mid-2016, then 2-3 pct out to end 2017
GDP growth forecast at 2.25 pct end 2015, 2.5-3.5 pct end 2016, 3-4 pct end 2017
GDP revisions for 2017 reflect slower start up of lng projects
Economic growth appears to have picked up in q3 thanks to exports, home building
Employment growth forecast to remain relatively strong, jobless rate to hold steady
Sees unemployment between 6-6.25 pct over next year, then falling gradually
Data suggest pick up in non-mining investment unlikely in the near term
Lower a$ has boosted net service exports, makes no comment on level of a$
Tighter supervision helping contain risk from housing market
Asia slowdown to be more persistent than expected, key uncertainty for forecasts
Key headlines - via Reuters
Australia central bank says prospects for economy have firmed a little
Subdued inflation outlook may afford scope to ease further if needed
Cuts near term inflation forecasts by 0.5 ppt, shaves longer term gdp forecasts
Sees underlying inflation around 2 pct for most of next year, before rising to 2.5 pct
Underlying inflation forecast 1.5-2.5 pct by mid-2016, then 2-3 pct out to end 2017
GDP growth forecast at 2.25 pct end 2015, 2.5-3.5 pct end 2016, 3-4 pct end 2017
GDP revisions for 2017 reflect slower start up of lng projects
Economic growth appears to have picked up in q3 thanks to exports, home building
Employment growth forecast to remain relatively strong, jobless rate to hold steady
Sees unemployment between 6-6.25 pct over next year, then falling gradually
Data suggest pick up in non-mining investment unlikely in the near term
Lower a$ has boosted net service exports, makes no comment on level of a$
Tighter supervision helping contain risk from housing market
Asia slowdown to be more persistent than expected, key uncertainty for forecasts