Australia to cut lending rate

June 04, 2019

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SYDNEY: Australia’s central bank is expected to slash interest rates to historic lows on Tuesday, the first cut in three years amid global trade concerns and an underperforming domestic economy.

Australia’s resource-rich economy dodged the worst of the global financial crisis, but rising unemployment, low wages and below-target inflation are stoking fears about the health of the economy Down Under.

Analysts and investors are almost unanimous in their view that the Reserve Bank of Australia will cut rates by 25 basis points to 1.25 per cent when it holds its monthly policy meeting.

Published in Dawn, June 4th, 2019