– The RBA has cut its inflation forecasts but left the GDP projections unchanged.
– The easing bias was not explicitly stated but the risks lie with another rate cut in August following the next inflation update.
– Global growth risks appear to be evenly balanced. China favourable but EU region still has downside risks.
– Local growth expected to be below trend for a time as mining investment peaks. Signs of pick-up in non-mining economy.
– Lower interest rates are producing more spending in interest rate sensitive parts of the economy.
– AUD remains at high levels despite lower terms of trade.
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Commonwealth Bank