The main points from the Statement on Monetary Policy for the RBA today:

  • GDP growth seen at 2.25% at the end of 2013 vs 2.5% previously
    Sees 2.5% mid-2014, 2.75% to 4.25% end 2015
  • Recent inflation, wage data had not lessened scope to cut at the August meeting
  • Left the inflation outlook broadly unchanged
  • Economic growth expected to stay below trend to mid-2014, rise above trend 2015
  • Underlying inflation seen at 2.25 % end 2013 and mid-2014, 2-3 % out to end 2015
  • Lower growth, labour costs to offset inflationary impact of as fall to date
  • AUD still high, further decline would raise profile for economic growth and inflation
  • Mining investment likely to decline “noticeably’ over next few years, timing uncertain
  • Unemployment rate expected to rise gradually for next year or so

There isn’t much of surprise in the statement at all. I’ve bolded the part where they say the AUD is still high, and where they have cut GDP forecasts.

The AUD initially dipped, hitting 0.9087, but has since come back to the above the session’s highs, currently just above 0.9120/25.

I posted the full text link here