Reserve Bank of Australia cuts growth forecast

The Reserve Bank of Australia has cut its growth outlook for 2023 to 1%. The Reserve Bank of Australia has cut its growth outlook for the country to 1% from its previous forecast of 1.25%. “Growth in economic activity in Australia is forecast to remain subdued for the remainder of the year as cost of living pressures and rising interest rates continue to weigh on the domestic economy,” the Reserve Bank of Australia said in its quarterly monetary policy statement. Still, the RBA noted that inflation is “trending in the right direction” and lowered its inflation rate forecast to 4.25% from 4.5%. The bank noted that inflation eased in the June quarter, but says it is still “too high”. Inflation is expected to continue to fall, reaching 3.75% by the end of 2024 and returning to its target range of 2-3% by late 2025.