The Statement on Monetary Policy (SoMP) is released each quarter and it is closely watched for the updates to the RBA’s own forecasts. In the August SoMP, the “Outlook” section states, “The forecasts for global and domestic growth are little changed from those presented in the May Statement on Monetary Policy.” In this latest SoMP, the Outlook starts with the statement, “Domestic economic conditions have been a bit stronger than were expected at the time of the August Statement on Monetary Policy.”
Accordingly, the RBA has upped some of its GDP and inflation forecasts and reduced its unemployment rate forecasts. GDP growth in the years to December 2018 and June 2020 have both been raised by 0.25%. Forecasts for the other periods remain as before.

The majority of the changes were made to the unemployment rate forecasts. This is not really a surprise when one considers the current unemployment rate is 5.0%.