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UK seeks business views on response to US tariffs
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Australia Cuts Key Interest Rates
The Australian central bank slashed its key cash rate to a unprecedented low of 3% this past Tuesday.
The Australian central bank slashed its key cash rate to an unprecedented low of 3% this past Tuesday. The sixth cut in as many months comes in an effort to protect households from the diminishing economy and surging joblessness.
The Australian dollar remains secure for now, but bill futures have dropped as investors bargained for an ongoing ease from the Reserve bank in the face of further market cuts to 2.25%.
Rory Robertson, interest rate strategist at Macquarie, commented:
"This was a compromise between doing something now to respond tothe unexpected recession we're in and saving ammunition for the darker days that lie ahead."
Continuing, he added that "the RBA will be under pressure for a cut at every meeting for the next year as unemployment keeps rising. This isn't the end of the easing."