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The Reserve Bank of Australia is releasing the full detail of its updated forecasts in the August Statement on Monetary Policy.

This follows Tuesday’s statement, whereby the Governor, Phillip Lowe, revealed that the forecast of -6%yr contraction by end 2020 has not changed, though they trimmed 2021 growth slightly, to +5%.

Markets are looking to the assessment of the risks ahead, especially with respect to the forever higher Aussie dollar.

Here are the details…

  • RBA SAYS  BOARD WILL NOT INCREASE THE CASH RATE TARGET UNTIL PROGRESS IS BEING MADE TOWARDS FULL EMPLOYMENT, INFLATION TARGET
  • 06-Aug-2020 19:30:47 – RBA FORECASTS Y/Y GDP AT -6% FOR JUNE, -6% FOR DEC, +5% DEC 2021, +4% DEC 2022
  • 06-Aug-2020 19:31:00 – RBA SAYS BOARD IS COMMITTED TO DOING WHAT IT CAN TO SUPPORT JOBS, INCOMES AND BUSINESSES
  • 06-Aug-2020 19:31:03 – RBA FORECASTS UNEMPLOYMENT 10% FOR DEC, 8.5% DEC 2021, 7% DEC 2022

more to come…

AUD reaction

The currency has been consolidating at the recovery and weekly highs in the 0.7230s into the release and events today, (China Trade Balance on the cards also),.

The currency has …

More to come…

Meanwhile, the coronavirus cases mount

Looking beyond, we are looking now for Assistant Governor Economic Luci Ellis’s speaking via an ABE webinar.

Description the RBA Monetary Policy Statement

The RBA Monetary Policy Statement released by the Reserve bank of Australia reviews economic and financial conditions determines the appropriate stance of monetary policy and assesses the risks to its long-run goals of price stability and sustainable economic growth. It is considered as a clear guide to the future RBA interest rate policy. Any changes in this report affect the AUD volatility. If the RBA statement shows a hawkish outlook, that is seen as positive (or bullish) for the AUD, while a dovish outlook is seen as negatvie (or bearish).