RBA Cuts Growth, Inflation Outlook on Weak Hiring: Economy

The Reserve Bank of Australia cut growth and inflation forecasts as weak job and housing markets keep price gains in check, and as the local currency slid toward its biggest weekly drop of the year.

“Labor market conditions have continued to be on the soft side to date, with large increases in employment in mining and some service industries roughly offset by declines in the manufacturing, hospitality and retail sectors,” the central bank said today in its quarterly monetary policy statement. “A recovery in housing construction is unlikely in the near term.”