Aussie gridlock leaves central bank to do heavy lifting

SYDNEY: Australia’s central bank will have to carry the economy on its own after a cliff hanger election condemned the country to months of deadlock on budget reform, adding to an already compelling case for another cut in interest rates.

Vote counting will not even be finished when the Reserve Bank of Australia (RBA) holds its July policy meeting today, making an easing unlikely this month. Rates are already at all-time lows of 1.75% after being cut in May.