RBA's SoMP: Underlying inflation to remain under 2% for much of forecast period

The RBA’s quarterly Statement on Monetary Policy (SoMP), issued quarterly, has been published, with the Central Bank noting that underlying inflation is set to remain under 2% for much of its forecast period.

Key headlines - via Reuters

RBA quarterly statement repeats policy easing to help foster growth, offers no forward guidance

Uunderlying inflation to remain under 2 pct for much of forecast period, reach 2 pct by end 2018

Prospects for economy positive, but low inflation allows for "even stronger growth"

Judged risks associated with rising house prices and debt had diminished

Says AUD remains significant source of uncertainty for inflation, growth forecasts

Economic growth and inflation forecasts little changed overall

Forecasts underlying inflation 1.5 pct by end 2016, 1.5-2.5 pct end 2017, 1.5-2.5 pct end 2018

Forecasts gdp growth 2.5-3.5 pct end 2016, 2.5-3.5 pct end 2017, 3-4 pct end 2018

Says unemployment to fall only a little out to 2018, employment growth to be modest this year

Drag on gdp from falling mining investment looks to have peaked, non-mining still subdued

Dwelling investment to stay strong for next year or so, but raises risk of oversupply

GDP growth looks to have moderated in q2 as net exports added less

Says wage growth expected to remain low, rise modestly out to 2018

Increasing supply, china steel cutbacks to put downward pressure on iron ore prices

Growth in china expected to slow gradually over next few years, housing a risk

Brexit to have limited effect on Australia's major trading partners