The Reserve Bank of Australia, the country’s central bank issued a statement that if required it will raise interest rates to tackle inflation in the face of rising consumer demand or other inflationary pressures ensuing from higher oil prices. Australia’s benchmark interest rate has been held steady at 5.5% since March last year.
At the same time the Bank has revised inflationary forecast down from and earlier estimate of 3% to 2.75%. Experts are of the opinion that the Bank’s statement was issued with the intent of talking down inflationary pressures and that it is unlikely to increase the interest rates. The Australian Dollar stayed range bound on this news.
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