World Economy

Australia May Cut Rate

Australia May Cut RateAustralia May Cut Rate

Australian consumer prices rose at the slowest annual pace since 1999 last quarter while core inflation remained at a record low, setting the stage for a cut in interest rates as early as next week, CNBC reported. The headline CPI index rose just 1% in the year to June, while key measures of underlying inflation held at 1.5%, all well below the Reserve Bank of Australia’s target band of 2 to 3%. The central bank had already cut rates to an all-time low of 1.75% in May. Many analysts now look for a repeat performance at the RBA’s next meeting on Aug. 2.