Inflation will decline faster than previously forecast as Australian economy slows, RBA says

The Reserve Bank’s quarterly statement on monetary policy predicts that the underlying inflation rate will end the year at 4%

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Australia’s near-term inflation should decline faster than previously predicted as wage growth “momentum” eases and the economy slows but avoids a technical recession, the Reserve Bank said in its latest quarterly statement on monetary policy.

The forecasts, released on Friday, are likely to be foster expectations the RBA is close to if not at the end of its record pace of interest rate rises that began last May.