New economic forecasts from the RBA see lower growth and inflation in 2024

<p>The updated economic forecasts for 2024 and 2025 show small shifts in expectations for Gross Domestic Product and the Consumer Price Index.</p><p>For 2024, the GDP forecast has been slightly adjusted downwards from an initial expectation of 2.0% to 1.8%. The CPI forecast for the same year also saw a slight adjustment, moving from 3.5% to 3.2%. This reduction in the CPI forecast could indicate a more favorable inflation outlook than initially anticipated, and sooner rate cuts, though it's still some distance from target. </p><p>Moving into 2025, the GDP forecast also experienced a slight decrease from 2.4% to 2.3%. This adjustment, while modest, points to a continued expectation of solid, albeit slightly tempered, economic growth. On the inflation front, the CPI forecast for 2025 was revised downwards from 2.9% to 2.8%. This continued trend of mild adjustments in inflation expectations suggests a stabilization of price increases, aligning with targeted inflation rates and indicating a potential easing of rates over time.</p><p>But what's important to keep in mind here is that 2.8% is still at the high end of the RBA's 2-3% inflation target.</p><p>New 2025 forecasts :</p><p>Here are the new forecasts for December 2024 compared to the previous ones:</p>

This article was written by Adam Button at www.forexlive.com.