On Tuesday, the Reserve Bank of Australia adjusted their rates at an all-time low at 1% which was affected by the previous easing. Although, the markets are weighing another rate cut before the end of the year amid the policy stimulus in the year.
In the past two months, the central bank reduced the borrowing rates by a quarter amid the present global economic situation of the Sino-US trade war and pressured consumers.
RBA Governor Philip Lowe mentioned that some more things could happen after their monthly meeting. He added that it is a logical action to extend lower interest rates to help the growth of employment and inflation.
JPMorgan Chase & Co economist Ben Jarman commented that we can notice the “upward trajectory” could move if they worry about the unemployment rate. However, they believe that RBA will likely postpone and continue monetary easing in early next year.
Furthermore, a rate cut of 75% in October and 0.5% is expected around the early months next year. On Friday, we can look forward to an update on economic forecasts added to the previous commentary of Lowe of likely prolonged easing.