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AUSTRALIAN GOVT PLANS TO KEEP BUDGET IN THE BLACK: TREASURER.
WASHINGTON, May 1 Asia Pulse - Australian treasurer Peter Costello said that the Australian government's strategy remained to deliver a federal budget that was in the black.
"We have now delivered four surplus budgets and we want to continue to keep the budget in the black," Mr Costello told a press conference at the World Bank's headquarters.
Mr Costello remained tightlipped about what will be contained in the budget and refused to speculate on whether the Reserve Bank of Australia (RBA) would cut official interest rates later this week.
But he did acknowledge the RBA's past three rate reductions "will be good for the economy".
When asked about interest rates, Mr Costello said "our price measures still indicate price increases are subdued".
"So we have got restraint in relation to prices and that has given us an opportunity to reduce interest rates, as we have over the course of this year, and that will be good for the economy," Mr Costello said.
Economists are split on whether the RBA will announce a rate cut tomorrow.
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