“The Reserve Bank of Australia downgraded growth forecasts for the economy and inflation in the medium term,” - the correspondent of Arsenal-FX reported (rated among the TOP Forex Brokers Masterforex-V World Academy http://www.masterforex-v.com/).
According to the Australian Bureau of Statistics, the decline in the unemployment rate in Australia for December of the previous year was 6.1 percent.
Expensive National Currency – the Only Reason for Weak Economic Growth
Weak GDP growth in Australia, observed in recent years, is due to the high rate of the national currency and the decline in investments in the mining sector of the economy, as well as the fall in the value of commodities that are exported from Australia.
Australian CB Reduce Rates
As has been previously reported, the Central Bank of Australia lowered its benchmark interest rate to a record low - 2.25 percent. Regulator explained this decision by the fact that the national currency is currently overvalued.
The deterioration of macroeconomic forecasts in the future will only help to reduce rates, according to experts. Thus, it is possible that the Australian CB will cut rates once again at least for the period until mid-2015.
"Today, February 24, 2015, the Australian dollar continues to trade in a flat at 0.7793 dollars per Australian dollar," - the experts of Masterforex-V say. The closest major level of support is at 0.7643.
