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  • Foreign Currency Exchange News from HiFX

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Nov
02
2011

The RBA has cut the Official Cash Rate to 4.50percent

01 November 2011



• RBA says neutral stance now consistent
• Fears of a major downturn have not been borne out
• China’s growth has slowed
• Inflation now likely to be close to target
• Overall growth moderate, confidence subdued
• Significant slowing in European  economic activity
• Financial market conditions had been tighter than normal
• Commodity prices have generally declined over recent  months
• Less risk of wage costs rising
• Sometime yet before concerns about Europe can definitely be laid to rest
• Inflation likely to be consistent with target in 2012 & 2013
• Recent market turmoil on confidence may result in period of household caution

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