World Economy

RBA May Cut Rates Further

RBA May Cut Rates FurtherRBA May Cut Rates Further

Reserve Bank Governor Philip Lowe believes Australia’s economy does not warrant lower rates, but he has left open the possibility that he may be forced into it by the monetary policy action of central banks elsewhere, AAP reported. The Bank of Japan’s vow last week to maintain its extraordinary monetary policies until its inflation rate is in excess of 2% shows the offshore pressures on the Reserve Bank will keep on coming. It also shows why the US Federal Reserve choked yet again at the cusp of a decision to raise rates.