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  • 11 months ago
The Reserve Bank of Australia (RBA) has handed down its second interest rate cut of the year in more good news for Aussie homeowners. Watch RBA Governor Michele Bullock make the announcement.
Transcript
00:00So price increases have slowed and it's fairly broadly based and this is very good news.
00:07The board's strategy over quite some time has been to bring inflation down while avoiding
00:12a sharp rise in unemployment.
00:14This is consistent with our dual mandate of price stability and full employment.
00:20I know this period of relatively high interest rates has been and continues to be challenging
00:25for many households and businesses but it was essential we brought inflation down because
00:30inflation hurts everyone.
00:33The strategy that we took to achieve this was different to that of some other central
00:37banks who took rates much higher than we did.
00:41The board accepted the trade off that leaving the cash rate where it was would bring inflation
00:45down more gradually but without a big increase in unemployment.
00:49A sharp rise in unemployment would have been very costly for families and for the Australian
00:54economy.
00:56Anyone who has experienced unemployment knows the profound impact that it has on your
01:00life and those that depend on you.
01:02So the cautious approach we have taken has got us to this point where inflation is now
01:08below 3% and employment is holding up.
01:13But now we've got inflation down we must keep it there while trying to maintain a healthy jobs
01:18market.
01:20So there's now a new set of challenges facing the economy but with inflation declining and
01:26the unemployment rate relatively low we're well positioned to deal with them.
01:30The board remains prepared to take further action if that is required.
01:35Now since our last meeting global economic and policy uncertainty has increased substantially
01:41following tariff announcements by the US administration, the response of its trading partners and subsequent
01:47changes to the policies including various bilateral agreements and deals.
01:52It's been a complete roller coaster I'd have to say.
01:56How the tariffs will affect the global economy are going to depend on a few things.
02:00Where tariffs will settle following negotiations between the United States and its major trading
02:06partners.
02:07How the other trading partners respond.
02:10The extent to which global supply chains are disrupted by the increased barriers to trade.
02:14The degree to which trade can be diverted.
02:18And the impact of uncertainty on business investment and household spending.
02:22One thing to keep in mind we have made the judgement that global trade developments will overall
02:27be disinflationary for Australia.
02:29However there is a risk to inflation on the other side.
02:33The trade policies could lead to supply chain issues which could raise prices for some imports
02:39as much as we saw during the pandemic.
02:41And so we'll also need to be alert to such upside risks.
02:45To do not pass.
02:47To do not pass.
02:48The future of which trade aims.
02:49The future of this trade is a free unit and the cryptocurrency.
02:49The future of this trade, which is a free unit and the premiered currency is a free unit.
02:51And theÕ«xanis, a free unit, of the same type of price, if needs these two different
02:53restrictions on the market.
02:54The future of this trade is very large, though.
02:57And for that trade will be completely unwritten.
02:58Now that the trade is a free unit of the trade in which tradeext.
03:01And so we'll see the 현재 side of the trade, which is a while to pay for another trade.
03:04And so we can focus on the trade in the trade of the trade.
03:06And so we'll see if places on the trade of the trade between the trade, which says,
03:08what should be undersellies on the trade.
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