<p>Reserve Bank of Australia's Statement on Monetary Policy (SoMP) </p><p>Summary Headlines via Reuters, bolding is mine:</p><ul><li>
Board's priority is to return inflation to target</li><li>Board expects
further increases in interest rates will be needed</li><li>Board mindful of
rise in interest rates already made, policy acts with a lag</li><li>Considerable
uncertainty about outlook and level of rates needed to meet
objectives</li><li>Inflation likely to
have peaked at end of 2022, but labour and service costs rising</li><li>Domestically sourced
inflation, wages growth both picking up</li><li>Liaison suggests
firms expect wage growth to stabilise around 4% in coming quarters</li><li>Closely watching how
quickly falls in global goods prices passed on by local business</li><li>RBA revises up
forecasts for core inflation, wage growth and GDP, unemployment
outlook little changed</li><li>Trimmed mean CPI
seen at 4.3% y/y end 2023. 3.1% end 2024, 2.9% June 2025</li><li>CPI seen at 4.8% y/y
end 2023, 3.2% end 2024, 3.0% June 2025</li><li>GDP seen at 1.6% y/y
end 2023, 1.6% end 2024, 1.7% June 2025</li><li>Wage growth seen at
4.2% y/y end 2023, 4.0% end 2024, 3.8% June 2025</li><li>Unemployment seen at
3.8% end 2023, 4.3% end 2024, 4.4% June 2025</li><li>Forecasts based on
technical assumption cash rate will peak at 3.75%, ease to 3% by June
2025</li><li>Forecast population
growth revised higher to annual 1.5% due to faster migration</li><li>Risks to global
economy have abated in recent months as China reopens</li></ul><p>—</p><p>The SoMP outlines the Bank's evaluation of the domestic and global economies, as well as the prognosis for Australian inflation and output growth.</p><ul><li>There are also a few boxes released on certain topics of particular interest</li><li>There is a SoMP released four times a year</li></ul>
This article was written by Eamonn Sheridan at www.forexlive.com.
