The RBA’s quarterly Statement on Monetary Policy (SoMP) sets out the RBA’s view of domestic and international conditions. It also provides forecasts for Australian inflation and GDP growth based on the most recent data. While its view of international conditions will not move international markets, past SoMPs have moved Australian bond and currency markets from time to time.
On this occasion, there was little in the statement which was not already anticipated. Economists had already anticipated various growth forecasts would be pared back, especially the period regarding the year to June 2017. A 0.25% reduction in the June 2017 inflation forecast was no great shock, either.
