- There is a lot of uncertainty on the global outlook at the moment
- Inflation pressures remain, so need to be careful not to get ahead of ourselves
- Did not explicitly discuss a rate cut today
- Did talk a little about downside risks, including those globally
- It was a consensus decision to keep the cash rate unchanged
- Risk from US tariffs continue to be tied to impact on China and their response
- The impact of tariffs on inflation is less certain
- Many indicators point to labour market still being tight
- Would not put a number on unemployment rate that would indicate it is time to ease policy
Her early remarks so far aren’t too suggestive that they would look to cut rates again next month. A lot of the narrative will hinge on Trump’s tariffs though, so it is prudent not to pre-commit to anything. Bullock continues to emphasise that there are risks to both sides of the inflation outlook. AUD/USD is just marginally higher by 0.2% to 0.6260 currently.
This article was written by Justin Low at www.forexlive.com.
