Rate shock leaves RBA silence under scrutiny


Bold move: Bullock speaks during a press conference in Sydney yesterday. Australia’s central bank is signalling a wait-and-see approach on policy as US tariff plans stoke uncertainty across the world. — Bloomberg

SYDNEY: In the seven weeks leading up to the Australian central bank interest rate decision, its policymakers sat silent as hot wars in the Middle East and trade wars from the United States shook global confidence. 

That turmoil, along with local data skewed largely to the downside, sent money market expectations sliding towards a rate cut, even as inflation stayed within the Reserve Bank of Australia’s (RBA) 2% to 3% target and the labour market remained resilient.

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