Reserve Bank of Australia cuts key interest rate to fresh record low of 1%, in first consecutive monthly reductions since 2012.
RBA Governor Philip Lowe says in statement Tuesday: “Today's decision to lower the cash rate will help make further inroads into the spare capacity in the economy. It will assist with faster progress in reducing unemployment and achieve more assured progress towards the inflation target. The Board will continue to monitor developments in the labor market closely and adjust monetary policy if needed to support sustainable growth in the economy and the achievement of the inflation target over time.”
Inflation remains weak: consumer prices were flat in the first three months of the year and core inflation slowed in the period.
Australia's economy has slowed sharply in the past three quarters and expanded just 1.8% in the first three months of 2019 from a year earlier. That’s almost a percentage point below the economy’s speed limit.
Source : Bloomberg