Below are the main headlines of the RBA monetary policy statement August, via Reuters, presented by Gov. Phillip Lowe.
The Council hopes to give further steps in the normalization process of monetary conditions in the coming months.
It is not a pre-established path.
Global factors explain much of the rise in inflation, but domestic factors are also playing a role.
The Council is committed to doing what is necessary to ensure that inflation returns to target over time.
There are widespread upward pressures on prices due to strong demand, labor market tightness and capacity constraints in some sectors of the economy.
The rate hike is one more step in the normalization of monetary conditions.
Inflation is expected to peak later this year and then drop back to the 2-3% range.
The main source of uncertainty continues to be the behavior of household spending.
The bank’s central forecast is that inflation CPI to be around 7.75% in 2022, slightly above 4% in 2023 and around 3% in 2024.
The labor market remains tighter than it has been for many years.
The economy is expected to continue to grow strongly this year, with the pace of growth expected to slow afterward.
A is expected some rise in unemployment as economic growth slows.
The central banking forecast is for growth in GDP of 3.25% in 2022 and 1.75% in each of the following two years.
Source: Fx Street
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