Aussie Declines After RBA Releases Monetary Policy Statement

The Australian dollar fell today after the Reserve Bank of Australia released its Monetary Policy Statement, reducing its growth forecast for this year and indicating that it’s ready to ease monetary policy.
The Australian central bank said in its statement:

Largely reflecting developments in Europe, official forecasts for global growth have been revised lower, with growth in the world economy now expected to be below trend in 2012, but nothing like as weak as 2008–09.

The RBA estimated that the average rate of GDP growth will be 3.5 percent, while the previous forecast was 4 percent. The bank also revised its inflation forecast for the last quarter of this year to 3 percent, compared to the earlier estimate of 3.25 percent.
The RBA hinted at the possibility of interest rate cuts:

The current inflation outlook would, however, provide scope for easier monetary policy should demand conditions weaken materially.

AUD/USD fell from 1.0784 to 1.0746 and AUD/JPY declined from 83.75 to 83.38 as of 2:39 GMT today. EUR/AUD went higher from 1.2313 to 1.2351.

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