Treasurer Jim Chalmers says the US cutting interest rates was expected and will be a factor considered by the Reserve Bank of Australia. The cut, which jolted financial markets, puts pressure on the RBA to bring forward its own rate relief plans.
Treasurer Jim Chalmers says the US cutting interest rates was expected, and it will be a factor considered by the Reserve Bank of Australia.The cut its key interest rate by half a percentage point, jolting financial and commodity markets while putting pressure on the RBA to bring forward its own plans for rate relief.Speaking on Nine’s Today program, Chalmers said people in the US were expecting a rate cut from the Federal Reserve .
“Even after this interest rate cut overnight in the US, interest rates are still higher in the US than they are here. When the Reserve Bank meets next week, they will consider a whole range of things, including that, but they’ll be primarily focused on inflation as the government is.” Chalmers disagreed that the US lowering interest rates would lead to a recession, but conceded it was true the US jobs market has been softening.“The global economy is a pretty uncertain place.
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