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RBA: Concluding 2 paragraphs: "In the various scenarios considered by the Board,
inflation remains below 2 per cent over the next few years. In the March quarter
just passed, CPI inflation rose to 2.2 per cent, but it is expected to turn
negative temporarily in the June quarter, due to falls in oil prices, the
introduction of free child care and deferrals of various price increases.
Further out, in the baseline scenario inflation is 1 to 1.5 per cent in 2021 and
gradually picks up further from there. Given this outlook, the Bank will
maintain its efforts to keep funding costs low in Australia and credit available
to households and businesses. The Board is committed to do what it can to
support jobs, incomes and businesses during this difficult period and to make
sure that Australia is well placed for the expected recovery. The Board will not
increase the cash rate target until progress is being made towards full
employment and it is confident that inflation will be sustainably within the 2-3
per cent target band."
MNI London Bureau | +44 0203-865-3809 |
MNI London Bureau | +44 0203-865-3809 |

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