The RBA ‘s quarterly Statement on Monetary Policy is out and shows what we already know that the end of the mining boom is approaching and we’re going to fill holes with houses.
Here are the new forecasts:
The RBA nipped a bit off growth and added a bit to inflation.
There was nothing startling in the statement and feel no more illuminated about the trajectory for rates having read it. The bank is worried (as always) about inflation, the waning effect of the dollar and the need for higher productivity. It is also pretty uncertain about the timing of the coming mining peak, as well as the strength of the recovery in housing construction, which appears to be the bank’s last great gambit in central planning.
Will they cut again? Inevitably in my view. If not, the nascent housing recovery will stall.
