The RBA has lowered its forecasts for GDP growth and inflation in the latest quarterly Statement on Monetary Policy. The RBA says that growth in 2015 is forecast to be 2.25%, down from 2.50%, while inflation for 2015-16 (both headline and core) has been cut by 0.5%.
The SoMP is released each quarter and is closely watched for the updates to the RBA’s own forecasts. The Bank reiterated that it was ready to cut rates again if required but there was no sense that this was imminent. It said that the economy “will be operating with a degree of spare capacity for some time yet”.
The RBA’s forecast for employment did not change from its previous statement in August.
The unemployment rate is forecast to remain within its recent range to 6.0% to 6.25% over the next year and to decline only gradually toward the end of the forecast period.