RBA downgrades growth, inflation forecasts

The Reserve Bank of Australia has released its quarterly Statement of Monetary Policy and it’s all about downgrades. Here is the May table:

And here’s the today’s updated forecasts:

As you can see, growth for the 2014 year has been cut by 0.5% to 2.5% (after and upgrade to the year to June) and the following six months has had more doubt placed over it as well. Inflation has been slashed by 1% to 2% right out until year end 2015. The confidence interval charts tell the tale:

The blurb is here. Aussie got whacked 20 pips to the mid 92’s.