Economic Buzz: Reserve Bank of Australia cautious about inflation outlook

Andrew Hauser, the Deputy Governor of the Reserve Bank of Australia has stated that monetary policy needs to bring inflation down and that?s why the central bank has raised interest rates three times this year. He noted that this means slightly slower growth in consumption, slightly slower growth in employment. However, the central bank is forecasting consumption will still grow by 1.5 per cent a year or thereabouts and employment will still grow about 1 per cent. The central bank concluded last week that interest rates were okay where they were for now, though it is worried about the inflationary outlook and the upside risks to inflation due to Middle East crisis.

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