Reply To: RBA Accelerates Rate Cycle as it Raises Rates by 50bps to 0.75%


RBA Statement on Monetary Policy

Headlines from today’s SoMP via Reuters:
further increases in interest rates needed to restrain inflation
sharply raises inflation forecasts, sees core inflation above 2-3% band until 2024
says appropriate to start normalizing interest rates
says inflation pressures broadening due to supply chain bottlenecks, strong demand
says more firms expect materially higher wage costs, difficulty in finding workers
says the economy has been more resilient than expected, nearer to full employment
forecasts trimmed mean inflation at 4.6% Dec 2022, 3.1% Dec 2023, 2.9% June 2024
forecasts CPI inflation at 5.9% Dec 2022, 3.1% Dec 2023, 2.9% June 2024
forecasts unemployment 3.7% Dec 2022, 3.6% Dec 2023, 3.6% June 2024
forecasts wage growth 3.0% Dec 2022, 3.5% Dec 2023, 3.7% June 2024
forecasts gdp growth 4.2% Dec 2022, 2.0% Dec 2023, 2.0% June 2024
forecasts assume cash rate of 1.75% Dec 2022, 2.5% Dec 2023
says outlook for business/govt investment positive but constrained by capacity, supply chains
says Australia terms of trade to reach new peak in mid-2022, stay high for longer
says Australian dollar around where it was at start of year despite