Australian central bank reduces benchmark interest rate to 3.85% in second quarter percentage point cut this year

Australia central bank warns global trade war a major downside risk to economy

Australia's central bank on Tuesday said inflation would be lower and unemployment higher due to the cascading effects of global trade tensions, and that was even assuming interest rates were cut as deeply as markets expected. In its quarterly Statement on Monetary Policy, released on Tuesday, the Reserve Bank of Australia (RBA) said core inflation had cooled a little faster than expected, with a notable slowing in the service sector. It also warned the drag from U.S. President Donald Trump's tariffs would lower global growth and prove disinflationary in net terms for Australia.

Reuters

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34 minutes ago