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The Reserve Bank of Australia has reduced its forecast of the country's growth because of weak consumption growth, global trade tensions and the worsening outlook for the Chinese economy.
The central bank announced Friday in its monetary policy statement that it had lowered its gross domestic product growth forecast for the year to the end of June from 3.25% to 2.5%. .
The Australian dollar slid 0.5% to $ 0.706 against the dollar, its lowest level since early January.
The central bank noted that growth in Australia's main trading partners had slowed more than expected in the second half of 2018, with ongoing trade tensions involving the United States remaining a downside risk.
"The prospects for the global economy have become more uncertain, in part because it is difficult to predict how trade policies might evolve and how stimulative policies will support domestic demand, especially in China. ", did he declare.
In China, a series of indicators "suggest a more pronounced slowdown," said the bank, adding that "this slowdown is partly a result of efforts to curb parallel financing, as well as the effects of recent tariff increases on the economy. bilateral trade States. "
The RBA has maintained its key rate at 1.5% since August 2016. But Wednesday, Philip Lowe, governor of the bank, hinted that the next move in its key rate could be reduced as the risks related to The global economy is growing and the domestic housing market has slowed.
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