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.