FOREX TradingCharts.com

Financial News: RBA Chief Hints Rate Cut In June

RBA Chief Hints Rate Cut In June

05/21/2019 - 03:11:00 (RTTNews)

(RTTNews) - Reserve Bank of Australia Governor Philip Lowe signaled an interest rate cut in June to underpin growth in employment.

Addressing the Economic Society of Australia in Brisbane on Tuesday, Lowe said, "A lower cash rate would support employment growth and bring forward the time when inflation is consistent with the target." At the May board meeting, policymakers assessed that inflation was likely to remain low relative to the target and that a decrease in the cash rate would likely be appropriate.

"Given this assessment, at our meeting in two weeks' time, we will consider the case for lower interest rates," he said.

Lowe said the Australian economy can support an unemployment rate of below 5 percent without raising inflation concerns.

The banker said there are a number of options to reduce the unemployment rate. These include further monetary easing, additional fiscal support, including through spending on infrastructure, and structural policies that support firms expanding, investing and employing people.

"Relying on just one type of policy has limitations, so each of these is worth thinking about."

The minutes of the May meeting, released earlier today, showed that financial market pricing implied that the cash rate was expected to be lowered by 25 basis points within the next three months and again by the end of 2019.

Members noted that without an easing in monetary policy over the next six months, growth and inflation outcomes would be expected to be less favorable than the central scenario.

Marcel Thieliant, an economist at Capital Economics, said RBA is set to cut interest rates to 1.25 percent in June from 1.50 percent and follow up with another 25 basis point cut in August.

For comments and feedback: contact editorial@rttnews.com

Copyright(c) 2019 RTTNews.com. All Rights Reserved

Market News provided by RTTNews

RECENT INTERNATIONAL FINANCIAL NEWS


Bank Of England Keeps Rate Unchanged; Cuts Q2 Growth Outlook (29 min(s), 19 sec(s) ago)
(RTTNews) - The Bank of England maintained its interest rate and quantitative easing, as widely ex ...Full Story»

Swiss Exports Fall Further In May (45 min(s), 19 sec(s) ago)
(RTTNews) - Switzerland's exports fell for the third month in May, while imports rose, data fr ...Full Story»

Slovenia Output Price Inflation Slows In May (01 hr(s), 03 min(s), 19 sec(s) ago)
(RTTNews) - Slovenia's output prices slowed in May after rising in the previous month, figures ...Full Story»

Japan All Industry Activity Rises In April (01 hr(s), 05 min(s), 19 sec(s) ago)
(RTTNews) - Japan's industrial activity rose for the first time in three months in April, figu ...Full Story»

Denmark Consumer Confidence Falls Slightly (01 hr(s), 11 min(s), 19 sec(s) ago)
(RTTNews) - Denmark's consumer confidence fell slightly in June, survey data from Statistics D ...Full Story»

Turkey Consumer Confidence Rises In June (01 hr(s), 12 min(s), 19 sec(s) ago)
(RTTNews) - Turkey's consumer confidence rose in June after falling in the previous month, fig ...Full Story»

Taiwan Central Bank Keeps Rate Unchanged (01 hr(s), 39 min(s), 19 sec(s) ago)
(RTTNews) - Taiwan's central bank maintained its key interest rate for the twelfth straight me ...Full Story»

UK Retail Sales Fall For Second Month (03 hr(s), 11 min(s), 19 sec(s) ago)
(RTTNews) - UK retail sales declined for the second straight month in May, figures from the Office ...Full Story»

Search

INTERNATIONAL FINANCIAL NEWS

Bank Of England Keeps Rate Unchanged; Cuts Q2 Growth Outlook

06/20/2019 - 07:28 AM (RTTNews)
(RTTNews) - The Bank of England maintained its interest rate and quantitative easing, as widely ex ...Full Story>>

Swiss Exports Fall Further In May

06/20/2019 - 07:12 AM (RTTNews)
(RTTNews) - Switzerland's exports fell for the third month in May, while imports rose, data fr ...Full Story>>

Slovenia Output Price Inflation Slows In May

06/20/2019 - 06:54 AM (RTTNews)
(RTTNews) - Slovenia's output prices slowed in May after rising in the previous month, figures ...Full Story>>

Japan All Industry Activity Rises In April

06/20/2019 - 06:52 AM (RTTNews)
(RTTNews) - Japan's industrial activity rose for the first time in three months in April, figu ...Full Story>>

Denmark Consumer Confidence Falls Slightly

06/20/2019 - 06:46 AM (RTTNews)
(RTTNews) - Denmark's consumer confidence fell slightly in June, survey data from Statistics D ...Full Story>>
Copyright © 2019. All market data is provided by Barchart Solutions. Information is provided "as is" and solely for informational purposes, not for trading purposes or advice. To see all exchange delays and terms of use, please see disclaimer.