RBA Ponders Risks to Economic Outlook

Australia’s central bank sees significant uncertainties around the economic outlook, which was why interest rates were likely to stay at record lows for some time yet.

In minutes of its August 5 meeting, where the central bank marked a full year without a rate change, the Reserve Bank of Australia (RBA) also said there was a “notable degree” of spare capacity in the labour market.

“Members noted that there was inevitably a significant degree of uncertainty about the outlook, given the number of forces working in different directions,” the minutes said.  As a result, the Board felt it was important to consider the risks to the bank’s forecast for an eventual pick up in economic growth.

Reuters

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