RBA ready to use rapid-fire rate cuts if Trump policies rattle Australia’s economy, minutes reveal
Reserve Bank vetoed a 50 basis point cut in cash rate last month, but is willing to take such action if global economy demands it
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The Reserve Bank of Australia is prepared to respond decisively" to any deterioration in the global economy, paving the way for rapid-fire cash rate cuts if Donald Trump's tariffs spark further market upheaval.
The 20 May RBA meeting minutes, released on Tuesday, show the rate-setting board discussed implementing a bumper 50 basis point cut last month. But they decided such a move was not yet warranted because there were no immediate signs the economy had been significantly affected by the US trade policy.
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