Reserve Bank of Australia lifts growth, inflation forecasts for 2022

[SYDNEY] Australia's central bank expects the economy to recovery quickly from a deep pandemic-induced contraction last quarter, while having to lift its outlook for inflation as global supply pressures have a greater impact than first thought.

In a quarterly round up of the economy, the Reserve Bank of Australia (RBA) trimmed its forecast for gross domestic product (GDP) for this year to 3 per cent, from 4 per cent, but boosted 2022 by more than a percentage point to 5.5 per cent.

Trimmed mean inflation was now seen up at 2.25 per cent by the end of next year and 2.5 per cent for late 2023, the middle of its 2-3 per cent target band.

REUTERS