Australia AUD

Australia RBA Monetary Policy Statement

Impact:
High
Source: Reserve Bank of Australia

Next Release:

Date:
Period:
What Does It Measure?
The RBA Monetary Policy Statement measures the Reserve Bank of Australia's (RBA) monetary policy stance and economic outlook, focusing primarily on inflation, employment, and economic growth. This national indicator assesses the RBA's assessments and decisions regarding interest rates, thereby influencing market expectations and economic conditions.
Frequency
The RBA Monetary Policy Statement is released quarterly, typically on the first Friday of the month following the Board’s monetary policy meeting, and it provides a final assessment of the economic outlook.
Why Do Traders Care?
Traders closely monitor the RBA Monetary Policy Statement as it directly influences interest rates that affect the Australian dollar and stock market. Significant shifts in policy stance or economic outlook can lead to increased volatility in asset prices, making it crucial for forecasting and trading decisions.
What Is It Derived From?
The statement is derived from comprehensive economic analysis, including data from various sectors such as consumer spending, labor market conditions, and inflation statistics. The RBA synthesizes information from economic reports, surveys, and its own research to formulate its monetary policy.
Description
The Monetary Policy Statement provides insights into the RBA's economic forecasts and its rationale for policy decisions. It contrasts preliminary sentiment or assumptions that may be reflected in other reports since it seeks to offer a thorough and final analysis of Australia’s economic conditions.
Additional Notes
This statement is a coincident economic measure as it reflects the current economic conditions influencing monetary policy. It often serves as a basis for comparing the RBA's outlook against other major central banks and their policies, highlighting global economic interconnectivity.
Bullish or Bearish for Currency and Stocks
Higher than expected: Bullish for AUD, Bullish for Stocks. Lower than expected: Bearish for AUD, Bearish for Stocks. Dovish tone: Signaling lower interest rates or economic support, is usually good for the AUD but bad for Stocks due to cheaper borrowing costs.

Legend

High Potential Impact
This event has a strong potential to move markets significantly. If the 'Actual' value differs enough from the forecast or if the 'Previous' value is significantly revised, it signals new information that markets may rapidly adjust to.

Medium Potential Impact
This event may cause moderate market movement, especially if the 'Actual' deviates from the forecast or there's a notable revision to the 'Previous' value.

Low Potential Impact
This event is unlikely to affect market pricing unless there's an unexpected surprise or a major revision to prior data.

Surprise - Currency May Strengthen
Actual deviated from Forecast on a medium or high impact event and historically could strengthen the currency.

Surprise - Currency May Weaken
Actual deviated from Forcast on a medium or high impact event and historically could weaken the currency.

Big Surprise - Currency More Likely To Strengthen
'Actual' deviated from 'Forecast' more than 75% of historical deviations on a medium or high impact event and may likely strengthen the currency.

Big Surprise - Currency More Likely To Weaken
'Actual' deviated from 'Forecast' more than 75% of historical deviations on a medium or high impact event and may likely weaken the currency

Green Number Better than forecast for the currency (or previous revise better)
Red Number Worse than forecast for the currency (or previous revise better)
Hawkish Supports higher interest rates to fight inflation, strengthening the currency but weighing on stocks.
Dovish Favors lower rates to boost growth, weakening the currency but lifting stocks.
Date Time Actual Forecast Previous Surprise