Statement on Monetary Policy May 2026

Contents

• In Brief
• Overview
• 1. Financial Conditions
  • 1.1 Interest rate markets
  • 1.2 Corporate funding markets
  • 1.3 Foreign exchange markets
  • 1.4 Financial conditions in China
  • 1.5 Australian banks and credit markets
• 2. Economic Conditions
  • 2.1 Global economic conditions
  • 2.2 Australian economic conditions prior to the Middle East conflict
  • 2.3 Early indicators of the effect of the Middle East conflict on the Australian economy
• Box A: Insights from Liaison
• Box B: Changes to the Labour Force Survey
• 3. Outlook
  • 3.1 Key conditioning assumptions across the baseline forecast and adverse scenarios
  • 3.2 Key judgements in the baseline forecast
  • 3.3 Baseline global outlook
  • 3.4 Baseline domestic outlook
  • 3.5 Adverse scenarios
  • 3.6 Detailed baseline forecast information
• 4. In Depth – The Impact of Higher Global Energy Prices on the Australian Economy
  • 4.1 Energy commodities play an important role in the Australian economy
  • 4.2 Higher energy prices will have direct and indirect effects on inflation
  • 4.3 Recent energy price increases are likely to weigh on output growth

The cut-off for data used to prepare the Statement on Monetary Policy was 29 April 2026.

Underlying data for selected graphs. Other data may be available upon request via our general enquiry page.

Some graphs in this publication were generated using Mathematica.

ISSN 1448–5141