RBA considers case for rate cuts

The Reserve Bank of Australia says it is ready to lower interest rates to support the economy provided inflation remains benign.

This week the RBA kept its key cash rate unchanged at 4.75 per cent for a 10th consecutive meeting – its longest pause in more than five years.

St George Bank chief economist Besa Deda said the central bank was suggesting rate cuts were more likely. “They do seem to be weighing up whether underlying inflation is going to be as strong as previously expected," she said. "They seem to have opened the door for a possible rate cut.”

Source: Sydney Morning Herald

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