[b]RBA statement on monetary policy – 4 May 2018
[/b]
Lifts 2018 core inflation forecast to 2% from 1.75%
GDP growth forecast of 3.25% by December 2018, 2019
GDP growth forecast of 3% by mid-2020
If economy improves as expected, higher rates are appropriate
A significant appreciation in AUD would dampen growth and inflation
2018 unemployment rate forecast now at 5.5%, previously 5.25%
Labour market will still have spare capacity by mid-2020
Data implies economy currently growing around 2.75%
Data revisions show more resilient household consumption, sees solid growth for Q1
Economic growth for Q1 looks to have picked up, partly thanks to exports
Significant escalation of trade protectionism could derail global growth