RBA Should Keep Rates Low as Mining Peak Saps Growth, OECD Says
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Australia’s central bank should keep interest rates low as a high currency and fragile confidence inhibit growth needed to compensate for a mining slowdown, the Organization for Economic Cooperation and Development said.
Gross domestic product growth will slow to 2.6 percent in 2013, down from 3 percent projected in November, the OECD said in a report released in Paris yesterday. With the economy slowing, the government’s “gradual approach” to reducing the public deficit is welcome, it said.