RBA frets over currency, China; sticks with GDP, CPI forecasts

Sydney

AUSTRALIA'S central bank said the outlook for the currency and China are key uncertainties to its growth and inflation forecasts, which were otherwise little changed.

The Reserve Bank of Australia (RBA), in its quarterly statement on Friday, predicted annual growth of 2.5 per cent to 3.5 per cent through December, accelerating to around 3 per cent to 4 per cent in 2018. There was little near-term change for unemployment and core inflation was expected to remain at the current 1.5 per cent before picking up to 2 per cent by late 2018. The bank gave no interest-rate guidance after cutting rates to a record-low 1.5 per cent on Tuesday.