Economic Buzz: RBA Governor says global environment is uncertain and unpredictable

Michele Bullock, Governor of the Reserve Bank of Australia or RBA stated that the central bank has lowered the cash rate by a total of 75 basis points since the start of the year to now be 3.6 per cent after being held steady for a time at 4.35 per cent since November 2023. And the economic outlook continues to be clouded by uncertainty. We need to be alert to the risk that circumstances may change and be prepared to respond if necessary. The global environment is particularly uncertain and unpredictable, but monetary policy is well placed to respond if it seems international developments could have a material impact on Australia?s economy. She noted that we?ve made real progress in bringing inflation down. But our job is to make sure it stays within the target range in a way that?s sustainable ? not just for now, but for the long term. Low and stable inflation is important because it means that households and businesses can plan, invest and create jobs without having to worry about inflation.

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