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RBA's Inflation Forecast Uncertainty
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RBA's Head of Economic Analysis, Marion Kohler, acknowledges substantial uncertainty around inflation forecasts in Australia. The RBA forecasts inflation to reach the target range by the end of 2025, with the midpoint reached in 2026. The central projections are based on subdued economic growth and consistent labor market levels. The RBA left the official cash rate unchanged, with Governor Michele Bullock indicating all policy options are open.
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How does the RBA's stance on inflation forecasts align with global economic trends and policies?
How might the substantial uncertainty around inflation forecasts impact investment decisions and market stability in Australia?
What measures can the RBA take to mitigate the uncertainty and provide more accurate inflation forecasts?
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