Australia’s central bank Friday lowered its medium-term forecasts for inflation and economic growth, saying the economy won’t grow fast enough in the next year to prevent a further rise in unemployment.
In a quarterly statement, the RBA said there had been scant evidence of a broad-based recovery in the domestic economy, despite a lengthy period of low rates. Falling global crude-oil prices has muted inflation, and a weak job market will continue contain wage growth.
The grim outlook makes room for the Reserve Bank of Australia to further cut interest rates, staying in step with other central banks that have moved to ease policy settings in the past month.
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