Australia’s central bank (RBA) sees good prospects for growth and an eventual increase in wages and prices, though inflation is unlikely to be sustainably within its target range until Y 2024 at the earliest, a senior official said Wednesday.
Australia’s economy has witnessed a sharp rebound after last yr sliding into its 1st recession in nearly 30 yrs, though price pressures remain subdued, a Key reason why policy will remain stimulatory for a long time to come.
The Reserve Bank of Australia’s forecasts show inflation below the mid-point of its 2-3% target through mid-2023, despite interest rates at a record low 0.1%, a massive government bond buying program and solid fiscal stimulus.
In a speech in Sydney, Assistant RBA Governor Chris Kent said the central bank’s policy measures will continue to deliver “very stimulatory monetary conditions” until the economy returns to full employment and inflation is consistent with the target.
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