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15 Apr 2015
RBA ‘may need to act to prevent a persistent decline in inflation expectations’ - IMF
FXStreet (Mumbai) - The International Monetary Fund's (IMF) freshly released World Economic Outlook (WEO) says the downturn in the global commodity cycle continues "to hit Australia's economy".
Key Quotes from the Report:
“(RBA) may need to act to prevent a persistent decline in inflation expectations".
In addition, the IMF also warned of the damage from the large price plunge in 2015 for iron ore, Australia's largest export commodity, was "exacerbating the long-anticipated decline in resource-related investment" in Australia.
"However, supportive monetary policy and a somewhat weaker exchange rate will underpin non-resource activity, with growth gradually rising in 2015-16 to about 3% (broadly as projected in the October 2014 WEO)."
Key Quotes from the Report:
“(RBA) may need to act to prevent a persistent decline in inflation expectations".
In addition, the IMF also warned of the damage from the large price plunge in 2015 for iron ore, Australia's largest export commodity, was "exacerbating the long-anticipated decline in resource-related investment" in Australia.
"However, supportive monetary policy and a somewhat weaker exchange rate will underpin non-resource activity, with growth gradually rising in 2015-16 to about 3% (broadly as projected in the October 2014 WEO)."