Central Banks
Australia Puts Policy Pause Back on Table as Economy Slows
- Board members agreed to reconsider case to stand pat in April
- Markets now imply a quarter-point rate cut by the RBA in July
This article is for subscribers only.
Australia’s central bank will consider pausing its policy tightening cycle next month, given interest-rate settings are already restrictive and the economic outlook is uncertain, minutes of its March meeting showed.
The Reserve Bank delivered its 10th consecutive rate hike two weeks ago to take the cash rate to 3.6% as it judged inflation is still “too high” and the labor market “very tight,” minutes of the March 7 meeting showed Tuesday. Even so, the board returned to the question of standing pat during its discussions.