Cautious moves: The Reserve Bank of Australia building in Sydney. Financial markets are pricing in a 70% chance the central bank will cut rates again next month. — AP
Sydney: Australia’s central bank discussed the case to cut interest rates by an outsized half-percentage point last month, highlighting that a larger reduction would provide greater insurance for the economy against any major US-led trade upheaval.
The Reserve Bank of Australia (RBA) ultimately decided to lower borrowing costs by a quarter-point, as widely anticipated, in part to ensure that “monetary policy settings remained predictable at a time of heightened uncertainty,” according to minutes of the May 19 and 20 meeting released on yesterday.
