RBA Forecasts Lower Growth and Inflation, Holds Rates Amid Neutral Stance

The Reserve Bank of Australia has updated its economic forecasts for 2024 and 2025, with slight downward adjustments in GDP and CPI expectations. The revisions indicate a more favorable inflation outlook and potential easing of rates over time, although inflation forecasts remain at the high end of the RBA's target range. The forecasts also point to continued but slightly tempered economic growth, with modest adjustments in inflation expectations suggesting a stabilization of price increases.