Forecasting Assumptions
The forecasts for the domestic economy depend on forecasts
of economic growth and inflation in Australia's MTP
and assumptions for oil prices and the exchange rate,
all of which are set out in Panel A of Table 1. In
line with usual practice, it is assumed that the exchange
rate will remain broadly unchanged from the average
level reached in recent months. The farm sector forecasts
are prepared on the assumption that average seasonal
conditions will prevail in 1997-98.
