RBA Cuts Growth Forecasts

Australia’s central bank on Friday gave a more somber assessment on the economy and said that growth was likely to remain below trend for longer as it justified its decision to resume cutting interest rates this week.

In a 78-page quarterly statement, the Reserve Bank of Australia (RBA) also highlighted a string of uncertainties facing the economy, not least the combined effect of the collapse in oil prices and a lower exchange rate on domestic activity and inflation.

“New information suggests that consumption growth and non-mining business investment are likely to pick up later than previously had been expected, and that LNG production is likely to ramp up a bit more gradually than earlier expected. Lower export prices are expected to dampen the growth of incomes and activity,” the RBA said.

CNBC

Content is for general information purposes only. It is not investment advice or a solution to buy or sell securities. Opinions are the authors; not necessarily that of OANDA Business Information & Services, Inc. or any of its affiliates, subsidiaries, officers or directors. If you would like to reproduce or redistribute any of the content found on MarketPulse, an award winning forex, commodities and global indices analysis and news site service produced by OANDA Business Information & Services, Inc., please access the RSS feed or contact us at info@marketpulse.com. Visit https://www.marketpulse.com/ to find out more about the beat of the global markets. © 2023 OANDA Business Information & Services Inc.