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The Central Bank of Australia (RBA) indicated unemployment figures have reached its peak as a sign the economy is improving, although it pushed back the estimated growth on an annual basis.
"Data from the domestic economy during the last few months is generally quite good," said RBA Jumar officials yesterday in Sydney. "The current unemployment figures are expected to remain little changed over the next 18 months or from a level slightly lower than previous level, after which it will plummet in 2017 when demand for labor is starting up."
Officials are confident policy makers suggested a delay interest rate for three months at a low level of 2% may be extended. The pressure to cotinue economic stimulus be facilitated by improved employment and weaker currencies, allowing for the RBA Governor Glenn Stevens in taking his decision on Tuesday next week to remove any reference to their dollars is too high for the first time in 18 months.
"At the moment this seems to be more assured than before," said Michael Turner, strategic debt of Royal Bank of Canada in Sydney. "The survey results coupled with weak exchange rates have been a sufficient reason for the RBA to be more optimistic."
RBA today States "with an estimated the Federal Reserve began to tighten its policies before the end of the year, there is a chance the dollar value Australia will go down further." They estimate the main inflation to as low as 2.5% for the next two years, the value of the middle of their targets, in order to raise the price of imports while a declining currency value.
The Rise In Currency
The dollar's value up and Australia traded at 73,73 cents u.s. dollars at 12:12 local time from level 73,49 cents u.s. dollars before releasing the statement.
In a statement on monetary policy today, RBA estimates an average economic growth of between 2% to 3% in 2016, down from 2.5% to 3.5% as seen last May. According to the RBA cutting interest rates in February and May begin to have an impact on the economy.
"The Council has decided to accommodating stance of monetary policy remains appropriate," the RBA said.
"The Board will continue to assess policy and adjust the view as needed to help the development of balanced growth for demand and inflation outcomes."
RBA also lowered their estimates of population growth over the contribute of the low immigrant labor market while Australia remains weaker than a country like New Zealand which are the source of immigrants by age and productive capabilities. The population of productive age is estimated to be growing at a rate of 1.5% per year for the past 2 and a half years, approximately equaters percent lower annually than it estimated three months earlier. https://www.mql5.com/en/signals/120434#!tab=history
