• Repeats most prudent course in period of rates stability
  • AUD high by historical standards, fall in terms of trade means AUD could drop over time
  • RBA sees economic growth little below average over 2014/15, above average thereafter
  • Trims GDP forecast for end 2014 to 2.5 pct vs 2.75 pct, lowers forecast band for 2015
  • Underlying inflation for end 2014 seen at 2.25 pct vs 2.5 pct, 2.25-3.25 pct for end 2015
  • Removal of carbon tax to lower CPI by 0.75 ppt, underling inflation 0.25 ppt in 2014/15
  • Jump in july unemployment might be partly due to survey changes, sample rotation
  • Unemployment rate likely to remain elevated for some time, not decline until 2016
  • Slack in labour market, improved productivity to keep domestic costs contained
  • Falling mining investment, fiscal consolidation to drag on economic growth
  • Growth supported by strong resource exports, low rates, upswing in home building
  • Sees pick up in china aided by policy stimulus, expects Beijing to meet 7.5 pct 2014 target

Headlines via Reuters

Link to full text: Statement on Monetary Policy