RBA’s Lowe Signals Rate Pause While Pledging Readiness to Act

Australia’s central bank governor signaled he’ll stand pat in coming months to observe the impact of back-to-back interest rate cuts, while standing ready to resume easing should the outlook at home or abroad take a turn for the worse.

Reserve Bank chief Philip Lowe, in an evening speech after taking the cash rate down to 1% earlier Tuesday, cited rising risks to global growth if uncertainty from the U.S.-China dispute that has stalled investment doesn’t end. In Australia, he noted low borrowing costs, high commodity prices, a weaker currency and rising household incomes were cause for optimism.