RBA Cuts Growth Forecasts for Australia

The Reserve Bank of Australia has lowered its growth and inflation estimates for 2015 and 2016, saying the economy will continue to grow at a subpar rate for a longer than expected period.

The Australia dollar had a brief spike on the news, jumping to $0.7924, before turning lower to trade at $0.7872.

In its 70-page quarterly monetary policy report, the RBA narrowed its growth forecast for 2015 to 2.5 percent versus 2.25-3.25 percent previously and saw the economy growing at 2.75-3.75 percent in 2016, down from 3-4 percent.