RBA Cuts 2016 Underlying Inflation Forecast

The Reserve Bank of Australia (RBA) has revised its inflation forecast down to 1-2%, a significant drop from the previous 2-3% range. This adjustment follows a deflationary Consumer Price Index (CPI) report, prompting the RBA to cut the cash rate to 1.75%. The statement suggests that these measures aim to boost economic growth, although GDP and unemployment forecasts remain stable. The Australian dollar fell by nearly half a percent in response to the announcement, indicating market expectations of further monetary easing. Historically, the RBA tends to implement multiple rate cuts, and the current statement aligns with this pattern.

What was the RBA's inflation forecast adjusted to in February?

What was the cash rate set by the RBA last Tuesday?

How did the Aussie dollar react to the RBA's statement?

What does the RBA's statement suggest about future monetary policy?

What is the usual target band for inflation set by the RBA?