Reserve Bank holds rates, looks for certainty in an uncertain world
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In May, the Bank discussed the fact that Trump’s tariff agenda could be released from the global economy and a half of interest rates. Since then, things have developed, but no one can really say that the US President will decide every day day by day.
Bullock had to go back against the suggestions that the reserve had dusted if the global economy enters hell in a handbag due to Trump’s tariff disaster.
“We do not keep the interest rates high in case. We do not do this. We react to domestic data, domestic inflation data and find our way,” he said.
Another issue that forces the reserve is the labor market. Inflation continues to decrease, but unemployment refuses to climb, and since the bank began to remove interest rates in 2022, employers add more than 1.1 million staff.
This is more than uncertainty. This is outright for models about how the bank and the economy should work.
For the first time in the history of the Bank, the uncertainty about the timing of another ratio deduction was opened to the public with the publication of the votes of those gathered in the RBA meeting room. He did not participate in the decision to hold three members.
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For decades, the governors of the Bank talked about the association of the board members of the board of directors on wage movements. Now the people – and the government – may see that there are differences of opinion.
This is the last of the major reforms to the bank introduced by the Treasurer Jim Chalmers to align RBA with its global peers. Voting, a better informed committee that focuses on a press conference after the meeting, two -day meetings, and a better informed committee that focuses only on interest rates.
Considering that millions of mortgages and business owners believe that the bank will provide some financial respite, the decision is not very good for Chalmers or Anthony Albania.
Chalmers and Albanians hope that the reserve will be more sure about the inflation appearance on July 30 with these millions of people.
Otherwise, the honeymoon will end after the election, which is currently enjoying the government.
And you can be sure of that.
