SYDNEY, Aug 6 — Australia’s central bank today backed away from a third consecutive interest rate cut, but warned of “increased uncertainty” from global trade disputes.
The Reserve Bank of Australia chief Philip Lowe said the board had “decided to leave the cash rate unchanged at 1.00 per cent” but said further cuts could come.
The bank had cut rates by a quarter-point in June and again in July, amid concerns about the slowing economy.
Lowe said “low-income growth and declining housing prices” continued to be a drag on consumer spending.
There was also a veiled warning about the spiralling US-China trade dispute amid an otherwise “reasonable” global outlook.
“Increased uncertainty generated by the trade and technology disputes is affecting investment and means that the risks to the global economy remain tilted to the downside,” Lowe said. — AFP
