He said the country’s economy was experiencing a period of below-trend growth, and this is “expected to continue for a while”.
Mr Lowe also reiterated the RBA’s forecast that Australia’s CPI inflation “will continue to decline, to be around 3.5 per cent by the end of 2024 and to be back within the 2–3 per cent target range in late 2025”.
However, there are notable uncertainties that warrant attention. Services price inflation has shown unexpected persistence in other countries, raising the possibility of a similar trend in Australia.
Household consumption remains uncertain as many households face financial pressures, although some benefit from rising housing prices, substantial savings, and higher interest income.
He said these factors have substantially slowed consumption growth due to the impact of cost-of-living pressures and higher interest rates.
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