The Reserve Bank of Australia raised its forecasts for the inflation rates, boosted the Australian dollar to increase as the expectations indicate that RBA will raise the rates during the coming period. As for the Bank, it said the inflation rates will reach 2.5% in June, while it may to rise to 3.00% next December.
On the other hand, the Bank is expected that the economic growth will expand to 4.25% during the fourth quarter of 2011, also the CPI to increase to 3.25%, compared with previous expectations 3.00%. As for core inflation may jump to 3.00%, from 2.75%.
Moreover, the consumer prices index is to accelerate to 3.00% in the last three months of 2012, while it will rise to 3.5% in 2013.