MNI INSIGHT: A further downgrade to an..........>

RBA: MNI INSIGHT: A further downgrade to an already low inflation outlook may

appear worrisome for an inflation-targeting central bank, but the Reserve Bank

of Australia is looking at the brighter side of this through the boost it

provides to household real income. This is not to say the RBA isn't alert to the

impact that consistently low inflation could have on inflation expectations, and

thus future inflation. But the current outlook is helping them meet one of the

three mandates -- the general welfare of the Australian people -- with

households better off as prices of some administered services are falling.

- For full story see MNI Main Wire at 09:40 BST 08/07, or contact us for access.