RBA’s statement on monetary policy is out today

In this morning's SOMP the market will be looking for some detail on why the Bank dropped its usual reference to the exchange rate in this week's policy statement. For the updated forecasts, much change not expected in the key figures from the last round in May. This would, however, mask some significant shifts in some key determinants of growth. 

On the upside, the exchange rate and oil prices are lower, albeit so are the terms of trade. Population growth projections may also be lowered. So whilst headline numbers may be little changed, the context may be one of heightened uncertainty. An acknowledgement of financial market volatility, particularly in China, would add to this theme.