The RBA lowered its GDP growth and near-term inflation forecasts in the August Statement on Monetary Policy (SMP). TheBank has been at some pains to downplay the significance of these changes. The growth outlook is described as “notmaterially different”. Changes to inflation forecasts are mainly attributed to the removal of the carbon tax. Nevertheless,recent RBA commentary reveals signs of a more radical rethink in some areas. And some of the RBA’s longer-runningassumptions look less compelling.
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