No Plan Yet to Cut Interest Rates: Reserve Bank of Australia

Central bank Governor Michele Bullock has made it clear that the Reserve Bank of Australia (RBA) is not thinking of cutting interest rates anytime soon. In her address on Sept. 5, Bullock said that although inflation has dropped it was “premature to be thinking about rate cuts.” She maintained the policy will need to be “sufficiently restrictive until RBA is confident that inflation is moving sustainably towards the target range.” “While circumstances may change, and the Board will respond if economic conditions evolve differently than expected, she affirmed that if the economy follows its anticipated trajectory, the RBA “does not expect it will be in a position to cut rates in the near term.”...