Australian interest rates Featured Article

RBA trims growth, inflation, rocket dollar

Friday 6 February 2015

The RBA has released it’s Statement on Monetary Policy (SoMP) and has cut its growth and inflation forecasts as expected:

Growth in the year to June has been narrowed down from 2-3% to 2.25%. A quarter points has also been shaved off full year 21015 growth to a range of 2.25-3.5%. A quarter point has also been cut from both growth and inflation in 2016.

Pretty boring stuff, and that’s why the dollar jumped a half cent. Honestly, this is going to leave everyone shaking their heads. The downgrades do not justify the last cut let alone warrant another. The forecasts are far too bullish.

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About the author

David Llewellyn-Smith is Chief Strategist at the MB Fund and MB Super. David is the founding publisher and editor of MacroBusiness and was the founding publisher and global economy editor of The Diplomat, the Asia Pacific's leading geo-politics and economics portal. He is also a former gold trader and economic commentator at The Sydney Morning Herald, The Age, the ABC and Business Spectator. He is the co-author of The Great Crash of 2008 with Ross Garnaut and was the editor of the second Garnaut Climate Change Review.