Why MNI
MNI is the leading provider
of intelligence and analysis on the Global Fixed Income, Foreign Exchange and Energy markets. We use an innovative combination of real-time analysis, deep fundamental research and journalism to provide unique and actionable insights for traders and investors. Our "All signal, no noise" approach drives an intelligence service that is succinct and timely, which is highly regarded by our time constrained client base.Our Head Office is in London with offices in Chicago, Washington and Beijing, as well as an on the ground presence in other major financial centres across the world.
The Reserve Bank of Australia forecasts near-term GDP growth to slump – growing just 0.9% y/y in Dec. 2023, down from the previous 1.2% forecasts and the current 2.3% rate, according to the Statement on Monetary Policy released today.
The RBA noted the softer growth reflected the subdued gains in household consumption “as higher interest rates and cost-of-living pressures weigh on real disposable income.”
The central bank largely kept its inflation forecasts unchanged – headline inflation will fall to 4.1% by the end of the year and 3.3% by the end of 2024. The unemployment rate, currently at 3.5%, will rise to 3.9% by the end of the year and 4.5% by mid-2025, in line with the RBA’s previous forecast.
The statement also showed the RBA considered increasing the cash rate to 4.35% at its most recent meeting due to high services inflation. The Reserve kept the rate unchanged on Aug. 1 at 4.1%. (See MNI RBA WATCH: RBA Pauses With Tightening Bias)
Why MNI
MNI is the leading provider
of intelligence and analysis on the Global Fixed Income, Foreign Exchange and Energy markets. We use an innovative combination of real-time analysis, deep fundamental research and journalism to provide unique and actionable insights for traders and investors. Our "All signal, no noise" approach drives an intelligence service that is succinct and timely, which is highly regarded by our time constrained client base.Our Head Office is in London with offices in Chicago, Washington and Beijing, as well as an on the ground presence in other major financial centres across the world.