Australia’s central bank softened its economic outlook for 2016 to reflect slower population growth and said the effects of this year’s double interest rate cuts were still working through, suggesting it remained in a wait-and-see mode.
In its 72-page quarterly report, the Reserve Bank of Australia (RBA) said there is a “reasonable chance” for the local dollar to fall further once the Federal Reserve started to tighten monetary policy this year.
However, it omitted a previous prediction that a further drop in the currency was both likely and necessary.
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