Australia's central bank cuts rates to two-year low of 3.60%
The Reserve Bank of Australia (RBA) has reduced its benchmark cash rate by 0.25% to 3.60%, a two-year low, attributing the decision to moderating inflation and a softening labor market. While the RBA anticipates core inflation to settle within its...
By Reuters |
IANS
Australia's central bank on Tuesday cut its main cash rate by a quarter point to a two-year low of 3.60%, citing a slowdown in inflation and a looser labour market, though it was cautious on the prospect of further easing.
Wrapping up a two-day policy meeting, the Reserve Bank of Australia board said data suggested core inflation would moderate to around the middle of its 2% to 3% target band even assuming a gradual easing in policy.
Markets had been fully priced for a cut, having been wrong-footed in July when the central bank held steady, given inflation had slowed as desired in the second quarter while unemployment had moved higher.
Wrapping up a two-day policy meeting, the Reserve Bank of Australia board said data suggested core inflation would moderate to around the middle of its 2% to 3% target band even assuming a gradual easing in policy.
Markets had been fully priced for a cut, having been wrong-footed in July when the central bank held steady, given inflation had slowed as desired in the second quarter while unemployment had moved higher.
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