The central banks of Australia and Japan signalled that a deteriorating growth outlook for the US has made it more difficult for them to determine monetary policy. The Reserve Bank of Australia decided to continue holding interest rates despite a solid increase in the nation's gross domestic product, and the Bank of Japan said more monetary stimulus is possible. "If the US economy slows more than forecast and if there is a double-dip, then clearly there are significant implications for policy elsewhere," said Mitul Kotecha of Credit Agricole CIB.

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