The Australian Central Bank said on Wednesday that the monetary policy was bound with the current cash price, which caused financial pain for many families, but it was unable to exclude the increase in the tightening if necessary to tame the inflation.
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The Australian Central Bank reduced its standard prices by 25 basis points on Tuesday, as low inflation allows the rural room to reduce its monetary policy and enhance its slow economy.
The Australian Reserve Bank has also reduced the classification of GDP for the entire year from 2025 to 1.7 % of 2.1 %, saying that the weakest growth of the general demand in early 2025 was unlikely to be compensated during the rest of the year.
The country’s standard prices have now become 3.6 %, its lowest level since April 2023, and in line with the expectations of economists included in Reuters.
RBA said inflation had decreased “significantly” since the peak in 2022, with the high interest rates in the total demand and a possible “balance” balance.
The inflation came in Australia In 2.1 % in the second quarantsR, its lowest level since March 2021 and near the end of the RBA 2 % -3 % range.
Reducing rates on Tuesday comes in a significantly reshaped commercial environment, as American definitions entered into force, in addition to economic growth less than expected in the first quarter.
Australia has suffered a 10 % basic tariff by US President Donald Trump, with the country’s Minister of Trade And according to what was mentioned This is as a “justification” for government negotiations, adding that the country had conducted diplomacy with the United States in a “cold and calm” way.
The country’s economy grew by 1.3 % year on an annual basis in the first quarter, that is, 1.5 % lower growth in a Reuters poll. On a quarter of a quarter, the economy expanded 0.2 %, as it was composed of 0.4 % growth expectations.
Catherine Kennan, the head of the National Accounts ABS, has attributed the soft growth to reducing public spending and poor demand for consumers and exports.
Analysts at the Commonwealth Bank in Australia said on August 7 that they expected to reduce prices “locked” in August, saying that the data had evolved as expected yet The unexpected RBA contract in July.
CBA analysts also expect an additional discount for November, and they see another possibility in early 2026.
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