RBA hints at possible rate cut

The Reserve Bank of Australia has hinted at the possibility of another interest rate cut to support the country’s economic recovery from the coronavirus recession.

Speaking at the Citi Group annual investment conference on Thursday, RBA governor Philip Lowe said further monetary easing would support jobs growth and alleviate currency pressures.

The RBA has said an increase in the cash rate will not occur for at least the next two to three years or until inflation is within the bank’s target range of 2 to 3 per cent.

The central bank will make its next monetary policy decision in November.

Economists are forecasting an interest-rate cut of 15 basis points could occur at the next RBA monetary policy meeting, which falls on the same day as the Melbourne Cup.

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