AUD News 

Australia central bank charts steady course for rates as inflation lags economic growth  

“Leading indicators of labor demand point to strong growth in the period ahead” writes unknown author for Australia’s central bank sees strong economic growth this year and next but still doubts inflation will reach the mid-point of its target band even in 2020, a recipe for steady rates for some time yet.Inflation has consistently undershot the RBA’s target since early 2015 and was the single biggest reason the central bank cut interest rates to record lows in August 2016.The central bank noted there was uncertainty about the amount of spare capacity in the market and the level of the unemployment rate that is consistent with stable inflation.In a 70-page quarterly statement on monetary policy on Friday, the RBA left growth forecasts largely unchanged from its May outlook, but trimmed near-term estimates for inflation.

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