The SoMP is published by the Reserve Bank of Australia quarterly
- RBA Board saw "reasonable prospects" of achieving sustainable economic growth
- Inflation to stay steady in near term, rise gradually to 2 pct by end 2018
- Repeats an appreciating AUD could complicate economic transition
- GDP growth to be around potential in 2016/17, pick up to 3-4 pct by end 2018
- Rise in Australia's terms of trade a marked change, will provide support to income growth
- Outlook for commodity prices, particularly coal, more positive than previously thought
- GDP and inflation forecasts little changed, GDP seen 2.5-3.5 pct end 2017, 3-4 pct end 2018
- Underlying inflation forecast 1.5 pct end 2016, 1.5-2.5 pct all the way to end 2018
- RBA trims jobs growth forecast, jobless rate to "edge just a little lower" over next 2 years
- High underemployment points to labour market slack, but signs wages have stabilised
- House price growth has picked up noticeably in Sydney, Melbourne
- Home building pipeline to support economy, but risks of oversupply in apartments
- Outlook for household consumption remains a key uncertainty
- Revised data suggests non-mining investment has been on upward trend for past few years
- Near term risks to china economy have diminished, rising debt a longer term threat
- Higher commodity prices mean risks to global inflation more balanced than for some time
Quick Headlines via Reuters, bolding mine
Not a lot new here, growth and inflation forecasts left unchanged. I bolded a few points above that seem to indicate they bank is cautious. Not a lot in it though.
Full text here: Statement on Monetary Policy
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The Reserve Bank of Australia's Statement on Monetary Policy sets out the Bank's assessment of current economic conditions, both domestic and international, along with the outlook for Australian inflation and output growth. A number of boxes on topics of special interest are also published. The Statement is issued four times a year.
