-
Australia’s End-Game for Rates Draws Closer
Australia’s central bank could reach the lower bound of interest rates within just six months and be forced to confront unconventional policy, as tumbling prices of key commodity exports pile on extra pressure. Reserve Bank Governor Philip Lowe will probably keep the cash rate at 1% at Tuesday’s policy meeting as he waits to see the impact of back-to-back cuts that have helped the housing market perk up and hiring remain strong, while the weakening currency continues to play an effective shock absorber. But economists expect him to cut twice more to 0.5% by March as uncertainty from a worsening U.S.-China trade ... (full story)