The Australian dollar is around the same level now as when we last met with the Committee, though commodity prices are lower. Looking ahead, forecasters expect a bit less growth in the global economy this year than they did a few months ago.
Expectations for Australia’s trading partner group itself are for growth to be a bit below average, little changed from six months ago. Inflationary pressures globally look quite subdued. Global interest rates will still be very low, even if short-term rates move up a bit further in the United States.