Australia Has Scope to Cut Rates, Delay Surplus Return, IMF Says

Sept. 20 (Bloomberg) -- Australia has scope to lower benchmark rate further and delay a return to budget surplus this year should global outlook worsen, IMF says.

* “With expected inflation within the target range, the

strong Australian dollar and given efforts to return the

budget to surplus this year, monetary policy should remain

accommodative, and should act as the first line of defense

against near-term adverse shocks,” IMF said in preliminary

annual assessment * Australia’s economy will grow 3.25% in 2012, little changed

from forecast a year ago: IMF * “The Reserve Bank has the scope to lower interest rate and

loosen monetary conditions to help buffer against a downside

scenario”: IMF Story

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