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The Australian economy continued to expand in the March quarter, with an annual average growth rate of 2.7%. This is an improvement on the Q4 2015 outcome of 2.5%. The Q1 result was driven by improvements in mining exports with ongoing support from growth in the service sector. In light of Q1 2016 CPI results, indicating weak inflation over the quarter and an annual inflation rate of 1.3%, the RBA cut the cash rate a further 25bps to 1.75%.
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Head of Australia & New Zealand Research
Mobile: +61 431 947 161