AUD/USD Eases Below 0.79 as RBA Lowers Growth Forecasts

The Reserve Bank of Australia has lowered its growth and inflation estimates for 2015 and 2016, saying the economy will continue to grow at a subpar rate for a longer than expected period.

In its 70-page quarterly monetary policy report, the RBA narrowed its growth forecast for 2015 to 2.5 percent versus 2.25-3.25 percent previously and saw the economy growing at 2.75-3.75 percent in 2016, down from 3-4 percent.

Underlying inflation was adjusted to 2.5 percent for 2015, versus 2-3 percent previously, and brought down its 2016 forecast range to 1.75-2.75 percent, from 2-3 percent.  Still, the RBA suggested that there are green shoots in the economy, and recovery could happen sooner than expected.