Rba deputy governor philip lowe said that in the current, Business Economics

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Rba deputy governor philip lowe said that in the current

RBA alert to potential australian dollars overshoot

RBA Deputy Governor Philip Lowe said that in the current environment thr Austialian dollar might 'overshoot' and become too strong.As a result,interest rates wil remain flexible.

a. Why would the RBA be concerned if the australian dollar was to 'overshoot'?

b. What can a flexible interest rate policy to if the dollar does 'overshoot'?

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