Following are the highlights of the Reserve Bank of Australia's monetary policy statement:
- The Board sees no strong case for short-term rates movements.
- Higher interest rates may be appropriate at some point if the economy develops as expected.
- Steady monetary policy boosts stability and confidence.
- The decline of the Australian dollar due to the strength of the US dollar will be positive for growth and inflation.
- The Bank expects GDP to grow by 3.25% in 2018 and 2019 and by 3% in 2020.
- Unemployment forecasts at 5.5% in 2018 and 5.25% in 2019 and 5% in 2020.
- The Bank expects core inflation to rise to 1.75% in December 2018 and to reach 2% in December 2019 and 2.25% in 2020.
- CPI growth is likely to be very low in the third quarter due to changes in policy.
- Global economic growth remains strong and the outlook remains positive.
- Risks to the global growth of trade protectionism have increased.
