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RBA worried about low inflation

Australia's recent dip into deflationary territory is unlikely to have been a one off and could prompt further interest rate cuts this year, the Reserve Bank has signalled. According to the minutes from its May meeting, where the cash rate was cut to 1.75% on budget day, the RBA board was briefed about "ongoing inflation trends" and that the outlook could be lower for longer. Referring to the March CPI result where inflation went backwards by 0.2 per cent, the board was told that the data "were less subject to measurement error than many other key data series".
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ECB's Constancio: Other actors need to play their part

Speaking at the International Financials services event in London ECB member Constanico said that besides the ECB's determination to pursue its expansionary policies, other actors need to do their part. Uncertainties remain and further bouts of volatility cannot be precluded. ECB will continue to do what is necessary to achieve its goal of reaching a level of inflation close to 2% and enough policy tools can still be used, he said. 
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RBA eases inflation views in policy statement

The Aussie fell in Asia Friday after the Reserve Bank of Australia lowered its inflation views in its Statement of Monetary Policy. "The Reserve Bank of Australia’s new forecast that underlying inflation will remain below the 2-3% target range until the middle of 2018 supports our long-held view that interest rates will be cut again to 1.5% before long," Capital Economics said in a note to clients.
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Brexit in a focus with no data releases from the UK

With no major data releases from the UK today, traders continue to watch the Brexit polls and remain unsure as what to expect as the June 23rd vote approaches. While consolidation helped to shore up the GBP ahead of the weekend the underlying trend continues to point towards further bearishness in the run-up to the EU membership referendum in June. Read more...

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