Economics
Lowe Reiterates RBA Rate Cut on Table as Spare Capacity Persists
- June’s easing unlikely to ‘materially shift’ economy’s path
- Traders boost bets for July cut following governor’s speech
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Australia’s central bank chief Philip Lowe reiterated that it was “not unrealistic” to expect a further interest-rate cut.
The quarter-point reduction to a record-low 1.25% this month was unlikely to “materially shift” the current trajectory of slower economic growth and static unemployment, Lowe said in a speech that explained why the labor market has been central to recent policy decisions.