A Quick Wrap up of the RBA for future reference:
- Accommodating policy as appropriate to based on outlook assessment.
- Reasonable Chance A$ to decline further once FED hikes (if any).
- Past FALL in A$ to support economy in face of lower terms of trade.
- GDP revised lower to reflect slower population growth.(2-3%-2015/16,2.5-4% 2016/17)
- Inflation 2-3% out to 2017, UP from 1.75-2.75% on lower A$ rate.
- Domestic Inflationary pressures well-contained, lower A$ to lift trading prices.
- Recent data have been generally positive but still the economy some headwinds.
- Lowers Unemployment forecast. Slowing population growth explains steady Jobless Rate. Still slack in labor market, but LITTLE less than previously expected.
- Population Growth 1.5% from previous 1.75%.
- Home prices rising rapidly in Sydney & Melbourne, Weak elsewhere.
- Risks in Chinese economy remain somewhat tilted to the downside.
- Outlook for Business investment weak, though surveys paints more positive outlook.
