News Headline Summary

The Reserve Bank of Australia says it cuts 2013 GDP on weaker mining and fiscal tightening

Says:

- Sees gradual fall in bulk commodity prices in longer term.
- Mining boom is to peak sooner, lower level than expected.
- 2013 average GDP growth at 2.25%-3.25% vs. prior 2.75%-3.25%.
- Sees core inflation in 2%-3% target range next two years.
- Sees modest job growth, unemployment going 'little higher'.
- Repeats policy appropriate for time being, past cuts still working through.
- Risks to global outlook remain tilted to downside, reflecting troubles in Europe.
- Signs China has stabilised and expects gradual pick-up in growth there.

Reaction details (17:39)

- AUD/USD immediately moved 10 pips lower from 1.0388 to 1.0378 but the move has been quickly pared as much of the commentary is what we have heard from the Bank before and the cut to growth was marginal, only lowering the bottom end of the range.

08 Nov 2012 - 17:28 - Forex - Source: Newswires

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