The RBA’s May Statement on Monetary policy is out.
The key number is a cut in the CPI forecast from 3% to 2.25% in the year to June 2013.
The CPI forecast for the year to December 2013 is now just 2%.
Meanwhile the GDP growth forecast remains at 2.5% for the year to June 2013.
The RBA uses an assumption of the Australian dollar trading at US$1.02 for its forecasts but last night the Aussie took a big dive towards parity. It’s up slightly in early trade but still at just US$1.009.