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RBA's Lowe Sees Interest-Rate Outlook `More Evenly Balanced'

  • Says it’s still possible inflation accelerates and rates rise
  • But economy could be softer and lower rates may be appropriate
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Bloomberg’s Kathleen Hays explains why RBA’s Lowe shifted to a neutral policy outlook.(Source: Bloomberg)
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Australian central bank chief Philip Lowe shifted to a neutral policy outlook as he acknowledged increased economic risks at home and abroad, sending the nation’s currency down by more than half a U.S. cent.

“Over the past year, the next-move-is-up scenarios were more likely than the next-move-is-down scenarios. Today, the probabilities appear to be more evenly balanced,” Lowe said in the text of a speech in Sydney Wednesday.