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Reserve Bank of Australia Cuts Core Inflation Forecast to 1-2%
Australia’s central bank forecast core inflation is unlikely to reach the bottom of its target this year and will probably only do so in the ensuing two years as the developed-world disinflation quandary emerges Down Under. The central bank, in its quarterly statement Friday, left estimated economic growth at 2.5 percent to 3.5 percent this year and next and predicted unemployment will remain around the current 5.7 percent. It gave no guidance on the interest-rate outlook after cutting to a fresh record of 1.75 percent this week. “The phenomenon of surprisingly low wage growth for given labor market conditions ... (full story)