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RBA To Consider Rate Cut In June, Says Lowe

Reserve Bank of Australia Governor Philip Lowe said the board will consider the case for lower interest rates in June.

Addressing the Economic Society of Australia on Tuesday, Lowe said, "A lower cash rate would support employment growth and bring forward the time when inflation is consistent with the target."

At the May board meeting, policymakers assessed that inflation was likely to remain low relative to the target and that a decrease in the cash rate would likely be appropriate.

"Given this assessment, at our meeting in two weeks' time, we will consider the case for lower interest rates," he said.

Lowe said the Australian economy can support an unemployment rate of below 5 percent without raising inflation concerns.

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