Before we go any further, AUD/USD is barely moving .... Anyway, on with the SoMP headlines.

"The Board is prepared to be patient as it monitors how the various factors affecting inflation in Australia evolve."

  • says progress towards the bank's goals has been material, but significant uncertainties surround the inflation outlook
  • Australia has been affected by these global inflationary pressures, but to a lesser extent than some other advanced economies
  • upstream cost pressures in housing construction and durable goods are expected to push underlying inflation higher in the near term, but moderate over time
  • if realised, staff inflation forecasts imply that the bank's policy goals would be achieved sooner than previously envisaged.

Forecasts:

rba somp forecasts 04 February 2022

The Statement on Monetary Policy sets out the Bank's assessment of current economic conditions, both domestic and international, along with the outlook for Australian inflation and output growth. A number of boxes on topics of special interest are also published. The Statement is issued four times a year.

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