- Has not closed off the possibility of further rate cuts if needed
- Sees evidence past cuts are working, effects still have further to run
- Mining investment likely to fall faster than previously thought, especially in 2014/15
- High level of $A to constrain growth, lower currency needed to rebalance economy
- terms of trade expected to decline only modestly in coming years, could keep $A high
- CPI forecast for June 2014 nudged higher to 2.75%, but lowers forecast for end of 2015
- Underlying inflation still seen at or below 2.5% through the next 2 years
- Expect unemployment to increase gradually over the next year or so, then decline in 2015
- Non-mining investment expected to remain subdued in near term and pick up further out
- Stimulus boosting housing, outlook for household consumption has improved
- growth in government demand to remain very low compared to history
- Outlook for export volumes is strong, expected to add significantly to growth
- Global growth to pick up to around average in 2014, China supported by domestic demand
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Overall, quite a dovish sort of Statement, and AUD/USD lower on it
Full text: Statement on Monetary Policy
