At its meeting today, the Board decided to lower the cash rate by 25 basis points to 1.25 per cent. The Board took this decision to support employment growth and provide greater confidence that inflation will be consistent with the medium-term target. The outlook for the global economy remains reasonable, although the downside risks stemming from the trade disputes have increased. Growth in international trade remains weak and the increased uncertainty is affecting investment intentions in a number of countries. In China, the authorities have taken steps to support the economy, while addressing risks in the financial … (full story)
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Even if the Reserve Bank of Australia (RBA) announced a 25 basis points (bps) cut to its benchmark cash rate, the AUD/USD pair is on the bids near 0.6990 during early Tuesday. The RBA has cited downside risks to economic growth due to trade tussles while praising Chinese efforts for economic improvement. The central bank yet again emphasized on employment data and targets medium-term inflation upside. The Australian economic calendar flashed disappointing numbers during early-day as first-quarter current account deficit widened to -2.9 billion from -2.5 billion expected while April month seasonally adjusted retail sales … (full story)
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RBA cuts interest rate to 1.25% from 1.50%.: Wants to support labour market and growth.Cuts to make inroads on spare capacity.Sees underlying inflation at 1.75% this year.
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