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Reserve Bank confirms fragility of the Australian economy



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MEDIA RELEASE

THE HON JOE HOCKEY MP

SHADOW TREASURER

Tuesday, 3 April 2012

RESERVE BANK CONFIRMS FRAGILITY OF THE AUSTRALIAN ECONOMY

The Reserve Bank today confirmed the weakness in the Australian economy by noting that “output growth was somewhat below trend over the year”, “labour market conditions softened during 2011” and that “generally the housing market remains soft”.

The RBA has signalled it is likely to cut the cash rate again in May should the outlook for inflation remain contained.

This statement comes on top of a raft of recent data confirming the softness of the economy, including weak retail sales figures and an unexpected fall in residential building approvals.

In this environment of economic fragility, now is not the time to be imposing the world’s biggest carbon tax that will drive up the price of everything, reduce economic growth and cost jobs.

[ENDS]