Original article by Matthew Cranston, Jack Quail
The Australian – Page: 1 & 7 : 21-May-25

The Reserve Bank of Australia considered reducing the cash rate by 50 basis points on Tuesday, rather than its second 25 basis point cut so far in 2025. The central bank noted in its monetary policy statement that inflation is within its target band and is expected to remain there, so it deemed that an interest rate cut was appropriate. However, the RBA cautioned that although upside risks appear to have diminished, international developments are likely to weigh on the domestic economy. The RBA has downgraded its GDP growth forecast for the year to June from two per cent to 1.8 per cent, while it has warned of an outside chance that the Trump administration’s trade war could result in a global recession.

CORPORATES
RESERVE BANK OF AUSTRALIA