The Reserve Bank of Australia (RBA) released its quarterly Statement of Monetary Policy on Friday. The RBA revised its forecast for GDP growth for the year to June to 2.25%, compared with 2-3% in the RBA's previous estimate. The forecast for 2015 was lowered by 0.25% to 2.25% - 3.25 %.

GDP in 2015 was revised to 2.25% - 3.25%, down from 2.50% - 3.50%.

The growth at the end of the December 2016 was upgraded to between 3% - 4% from 2.75% - 4.25%.

The RBA downgraded its inflation forecast for the year to June to 1.25%, down from its previous estimate of 1.5% - 2.5%.

The RBA cut its interest rate to a new record low of 2.25% this week, down from 2.50%. The RBA said that the Aussie remains overvalued.

The central bank said today that the country's economy grew below trend in the second half of 2014.