SYDNEY – Australia’s central bank said on Monday economic forecasts were subject to huge uncertainty, one reason that policymakers have stayed the course on interest rates while waiting for more data.
Reserve Bank of Australia (RBA) Deputy Governor Andrew Hauser, in a speech in Brisbane, said inflation had been sticky in part due to there being less spare capacity in the economy than previously thought, though again estimates were subject to error.
That was why the RBA’s latest forecasts showed core inflation, which ran at 3.9% in the June quarter, was only expected to ease back to the target band of 2-3% by the
