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RBA Chief Sees No Strong Case For Near-Term Policy Adjustment

Reserve Bank of Australia Governor Philip Lowe said there is no strong case for a near-term policy adjustment.

The bank expects to make further progress in reducing unemployment and having inflation return to the mid-point of the target range, Lowe said Thursday.

At some point, it will be appropriate for interest rate to start moving up, when Australia makes progress on employment and inflation, he said. Next move in interest rates will be up, not down.

"If this is how things play out, the likely timing will depend upon the extent and pace of the progress that we make," Lowe added. The progress is expected to be only gradual.

It will of course keep that judgement under review at future meetings, the banker said.

The bank expects inflation to be in the 2-2.5 percent range over the next couple of years. Underlying inflation is forecast to be a bit lower than consumer price inflation.

At the same time, the economy is forecast to grow at an average rate of a bit above 3 percent over the next couple of years.

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