RBA flags scope for easing despite inflation rebound
Central bank emphasises need to battle below-target inflation rate, despite recent trend
The Reserve Bank of Australia (RBA) flagged the possibility of additional interest rate cuts today (February 2), despite a surprise rebound in inflation during the final quarter of 2015.
The central bank, which kept its benchmark cash rate at 2%, reiterated that the outlook for inflation affords "scope for further easing" if needed.
Inflation has drifted higher in recent months after falling to multi-year lows early in 2015. It climbed to 1.7% in the fourth quarter, the strongest showing in 12
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