The Reserve Bank of Australia (RBA) has said it is ready to slash off the rates again “if needed” to support employment, wage growth, and inflation, after the June cut that saw rates falling to a record-low 1%.
The central bank’s board decided that cutting rates by another 0.25% would help the weakened economy, the minutes of the RBA July policy meeting said.
However, RBA is mum about the timing of another cut, as opposed to the past two cuts when it was more explicit.
“Lower interest rates would provide more Australians with jobs and assist with achieving more assured progress towards the inflation target. The Board would continue to monitor developments in the labour market closely and adjust monetary policy if needed to support sustainable growth in the economy and the achievement of the inflation target over time,” according to the minutes released 16 July.
Before the July cut, experts predicted another 0.25% cut by November, according to a Reuters poll.
“There is no clear signal on the timing of another rate cut and we continue to expect a 25-basis-point (bps) cut in November, with a risk of an earlier move depending on the labour market and inflation,” National Australia Bank (NAB) economist Kaixin Owyong said.