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(CEP News) - Reserve Bank of Australia (RBA) Assistant Governor Malcom Edey gave no guidance on the subject on monetary policy in his speech delivered Wednesday afternoon in Sydney (Tuesday night EST), but said he sees a period of sharp slowdown for the Australian economy on it's way.
Nevertheless, he said, action from Australian officials and the depreciating local currency will cushion the downturn. In the past two months, the RBA has cuts rates by 175 basis points, the government introduced a $10.4 billion stimulus plan, and the Australian dollar has depreciated rapidly, now below 65 cents U.S. Edey said the bank's latest economic forecasts are uncertain given the unusually fragile situation in world markets, but seemed certain lowering commodity prices will bring down inflation. He said as world leaders make efforts to mend their economies, global stock markets should stabilize, but for now, market sentiment remains feeble. By Megan Ainscow,
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