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Reserve Bank of Australia Governor Philip Lowe says he is expecting the Australian economy to contract by "at least 2%" in the third quarter, but rebound back to its "pre-Delta track" by the second half of 2022.
Lowe said that prior to the Delta outbreak in early July the RBA had been "contemplating a further upward revision to our economic forecasts", see: MNI STATE OF PLAY: Lockdowns Force RBA To Extend QE.
The outbreak and the current lockdowns were a "major setback" but were likely to be only temporary, and the recovery had only been de-railed and not delayed.