RBA Opted for Smaller Cut to Stay Predictable in Uncertain Times
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 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 19-20 meeting released on Tuesday. The case to ease by 25 basis points to bring the cash rate to 3.85% was the 'stronger one,' the board concluded.
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E&E News
an hour ago
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Trump's steel tariff raise misses real target, says EU
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