The Reserve Bank quarterly Statement on Monetary Policy left the
forecast track for underlying inflation unchanged, implying there is no
need to raise rates further for the time being. It looks like the RBA is
on hold until late this year or early next. CPI outcomes and the speed of
the fall in unemployment will largely dictate the timing of the next hike. The key takeaways from the report is a 0.5% increase (from May) to the RBA’s 2Q GDP forecast to 3.0% and unchanged GDP and underlying CPI forecasts to Dec 2012 thereafter.
For your reference their underlying forecast until June 12 is 2.75% but for June 12 and Dec Qtr 12 it rises to 3.00%
