RBA Governor Explains Why Australia Lags Behind in Interest Rate Cuts

Reserve Bank of Australia (RBA) Governor Michele Bullock has broken her silence on why Australia is lagging behind other countries in cutting interest rates. Bullock explained that Australia tailors its interest rates to domestic circumstances, noting, “We have a floating exchange rate, so we are able to do that.” She highlighted that economic conditions in Australia differ from those in the United States, New Zealand, Canada, and other nations. “New Zealand and Canada have seen quite sharp rises in unemployment. The United States is a little different as well,” Bullock said, also pointing out that inflation hit these countries before Australia....