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RBA's SoMP: No material changes to GDP or inflation forecasts

Discussion in 'Fundamental Analysis' started by FXStreet_Team, Feb 5, 2016.

  1. FXStreet_Team

    FXStreet_Team Well-Known Member Trader

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    The RBA’s quarterly Statement on Monetary Policy (SoMP) has been published, with the Central Bank still seeing reasonable prospects for continued growth in the economy, adding that no material changes to GDP or inflation forecasts.

    Key headlines - via Reuters

    Says makes no material changes to gdp or inflation forecasts

    Repeats low inflation may provide scope for easier policy if needed

    Sees reasonable prospects for continued growth in the economy

    AUD has been adjusting to lower commodity prices, supporting service exports


    A$ has been adjusting to lower commodity prices, supporting service exports

    Cuts unemployment forecast, employment growth strong enough to reduce jobless rate further

    Notable improvement in employment over past three months not expected at time of last somp

    Strong service sector growth, subdued wages supporting labour demand

    Sees gdp growth at 2.5 pct end 2015, 2.5-3.5 pct end 2016 and end 2017, 3-4 pct to end june 2018

    Sees underling inflation at 2 pct to june 2016, 2-3 pct right out to end june 2018

    Pace of gdp growth in december qtr expected to have been below average

    Pick up in consumption is being sustained, liaison suggests retail sales improved over xmas period

    Drag on gdp from mining investment still expected to peak in 2015/16, non-mining subdued for now

    Conditions in housing market have eased, growth in investor loans has declined

    China remains a key uncertainty, risk of capital flight could limit scope for monetary easing
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