Here’s Australia Last 6 weeks = Exports yearly drop 10.7% Imports Yearly drop 2.4%.
Above informs exactly every word to the RBA statement especially as RBA raised. Imports will rise and Exports will continue to drop.
Compare RBA statement to the Import and Export Model. RBA raised again and more disaster lurks for Australia. They inform in the statement as RBA prefers an economic suicide mission.
The Import Side
Inflation in Australia has passed its peak but is still too high and is proving more persistent than expected a few months ago.
While the central forecast is for CPI inflation to continue to decline, progress looks to be slower than earlier expected.
Underlying inflation was higher than expected at the time of the August forecasts
The weight of this information suggests that the risk of inflation remaining higher for longer has increased. While the economy is experiencing a period of below-trend growth.
high inflation is weighing on people’s real incomes and household consumption growth is weak, as is dwelling investment.
Given that the economy is forecast to grow below trend, employment is expected to grow slower than the labour force.
Wages growth has picked up over the past year but is still consistent with the inflation target, provided that productivity growth picks up.
Inflation It erodes the value of savings, hurts household budgets, makes it harder for businesses to plan and invest, and worsens income inequality.
uncertainties regarding the lags in the effect of monetary policy and how firms’ pricing decisions and wages will respond to the slower growth in the economy at a time when the labour market remains tight.
Imports = Inflation, Interest Rates, Exchange Rates, OIL, Commodities
Exports = GDP, Money Supplies, Producer Prices, Output Gap, Unemployment, Wages, Consumption, Corporate Profits, Fixed Investments, Housing.