RBA: Rate cuts, Aussie weakness spur economic growth
The Reserve Bank of Australia, in its quarterly monetary policy statement, said interest rate cuts and the Australian dollar's depreciation ignite economic growth, with Governor Glenn Stevens expecting rates to stay on hold. Australia's central bank lowered the inflation projection for the year to June 2016, as well as growth reduced by a quarter point at the beginning and end of the forecast period. The RBA emphasized its outlook from three years ago, when it retained rates at 2%, unchanged for a sixth month, saying prospects for better economic conditions had slightly firmed in recent months. Also, the central bank projected unemployment to remain within the 6% to 6.25% range over the next year and plummet gradually toward the end of the forecast period.
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