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Australia: Central bank inflation bell

Shortages of goods and materials from congested supply chains could lead to higher-than-expected inflation, the Bank of Australia said.

The Reserve Bank of Australia confirmed its updated forecasts for annual underlying inflation at 2.25% at the end of 2022, and at 2.5% a year later.

However, he warned that the impact of supply constraints due to port congestion and shortages was difficult to predict, with potential risks in both directions.

“If global price pressures from supply shortages persist for longer than expected, the extent of the pass-through to domestic prices could be stronger than expected and lead to higher inflation rates in Australia,” he said. the RBA in its quarterly monetary policy report.

“However, it is also likely that global demand for goods will ease in the coming year, around the same time as more goods are coming online. imports to Australia “, he stressed.

The Bank of Australia has confirmed its central scenario for economic growth at an annual rate of 5.5% in 2022 and 2.5% in 2023.

Three months ago, estimates for 2022 spoke of annual GDP growth of 4.25%.

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Source From: Capital

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