The Reserve Bank of Australia (RBA) released its quarterly monetary policy statement today. The RBA lowered its GDP forecast for 2014 to a range of 2% - 3%, down from a range of 2.25% - 3.25%.

Australia's central bank said that Australia's "financial conditions remain very accommodative". The RBA added that the Australian currency remains high by historical standards.

The labour market remained subdued, but the labour market improved a little this year, so the RBA. "There remains a degree of spare capacity in the labour market", the statement said.

The RBA lowered its inflation forecast. Inflation is to be lower in 2014/15, but a bit higher in 2015/16.

The central bank reiterated that the most prudent course of RBA's monetary policy is likely to be "a period of stability in interest rates".