The RBA’s quarterly Statement on Monetary Policy (SoMP) is out and as widely expected they have downgraded their expectations for growth and inflation.
What’s striking however is just how little they have cut their forecasts with the range of GDP only shifting down a quarter point for 2015.
Likewise the CPI revision is only a quarter point.
Market players will be wondering what the mergency was that saw them rush to ease this week.
Here’s the chart.
We’ll have more analysis soon