Economics

Australia to Consider Cutting Rates Next Month, Lowe Says

Says lower cash rate would help boost jobs growth, inflation
Governor confirms shift to easing bias in Q&A after speech

RBA Governor Philip Lowe said he’ll consider cutting interest rates at next month’s meeting to spur faster hiring. (Source: Australian Broadcasting Corporation.)

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By Michael Heath

May 21, 2019 at 3:10 AM UTC

Updated on

May 21, 2019 at 7:08 AM UTC

This article is for subscribers only.

Australia’s central bank chief said he’ll consider easing monetary policy at next month’s meeting to drive faster hiring, saying unemployment needs to fall below 5% to help return inflation to target.

“A lower cash rate would support employment growth and bring forward the time when inflation is consistent with the target,” Governor Philip Lowe said in a speech in Brisbane Tuesday. “Given this assessment, at our meeting in two weeks’ time, we will consider the case for lower interest rates.”