The Reserve Bank of Australia lowered its GDP and unemployment forecasts on Friday. The Australian GDP for 2016 was cut to 2.5%-3.5% from 2.75%-3.75%, while core inflation is expected to be 2%-3%.

The unemployment rate is expected to be below 6.5%, down from the mid to high-6% range.

"The unemployment rate is now forecast to remain little changed over the next 18 months or so from recent levels, before declining over 2017," the central bank said.