Australia Rate Shock Puts RBA’s Radio Silence Under Scrutiny

In the seven weeks leading up to the Australian central bank interest rate decision Tuesday, its policymakers sat silent as hot wars in the Middle East and trade wars from the US shook global confidence.

That turmoil, along with local data skewed largely to the downside, sent money market expectations sliding toward a rate cut, even as inflation stayed within the Reserve Bank of Australia’s 2% to 3% target and the labor market remained resilient.