RBA monetary policy decision 06.02.2018

  • Inflation likely to remain low for some time
  •  Mostly same lines as per previous
  • Australian economy expected to grow around 3 pct in medium term
  • low level of interest rates continuing to support the Australian economy
  • household consumption remains a source of uncertainty
  • the labour market continues to strengthen
  • the unemployment rate expected to decline gradually
  • Forward Indicators Points To Solid Growth In Employment
  • wage growth is to remain low for some time, pick up gradually
  • nationwide house prices little-changed over past six months
  • reports some employers finding it difficult to hire workers with necessary skills
  • central forecast for CPI to be a bit above 2 pct in 2018 
  • Further progress on unemployment, inflation, likely to be gradual
  • Tighter Credit Standards Have Helped Contain Household Risks
  • On a trade-weighted basis, the Australian dollar remains within the range that it has been in over the past two years. An appreciating exchange rate would be expected to result in a slower pick-up in economic activity and inflation than currently forecast. (Nothing dovish here)
  • Here’s the link to the RBA press release  

AUD continues to lose ground, still on the back of the weaker retail sales , trade balance and falllng equity markets then.  AUDNZD under 1.0800 now.

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