Reserve takes hands off the growth lever

Original article by David Rogers
The Australian – Page: 19 & 28 : 7-Jun-17

The Reserve Bank of Australia’s monetary policy statement for June 2017 notes that GDP growth is likely to have slowed in the March 2017 quarter. Paul Dales of Capital Economics says that while the central bank may be willing to overlook a temporary fall in GDP, a second successive quarter of weak GDP growth in June would be a concern for it. Dales expects the RBA to leave official interest rates unchanged at 1.5 per cent for the rest of 2017, after doing so in June.

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