The Reserve Bank of Australia has left the door open to further interest rate cuts, with the economy forecast to continue on a slower growth track for longer than expected.
"The board will continue to assess the outlook and adjust policy as needed to foster sustainable growth in demand and inflation outcomes consistent with the inflation target over time," the RBA said in its quarterly statement on monetary police on Friday.
The RBA said economic growth was expected to be in the range of 2.5 to 3.5 per cent in the year to June 2016, which was a quarter of a percentage point weaker than previously predicted.
"GDP growth is forecast to remain below trend for a bit longer than had been anticipated in the February statement," the RBA said.
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