Australia central bank lowers growth forecasts
SYDNEY (AFP) - Australia's central bank on Friday scaled back its near-term forecasts for economic growth, saying mining investment was unwinding faster than expected and a pick-up in China was unlikely this year.
The Reserve Bank of Australia said it now expected the resources-driven economy to expand 2.25 per cent in the year to December 31 and 2.5 per cent in the 12 months to June 30, 2014.
It had expected 2.5 per cent and 2.0-3.0 per cent respectively in its May forecasts.
"The slightly weaker outlook than a few months ago reflects, among other things, the assessment that growth in China is now unlikely to pick up much, if at all, in coming quarters," the bank said it its quarterly statement on monetary policy.