RBA Signals Vigilance Amid Steady Data, Gradual Rate Cuts

The Reserve Bank of Australia remains vigilant to shifts in the economic outlook, though recent data have largely met expectations, Governor Michele Bullock said Monday. Speaking to lawmakers, Bullock noted that recent rate cuts are expected to support household and business spending, but global conditions remain “uncertain and unpredictable.” She added, “Since the August meeting, domestic data have been broadly in line with our expectations, or if anything slightly stronger – the board will discuss this and other developments at our meeting next week.” The central bank indicated it is close to meeting both its inflation and employment targets, with inflation on track to hit the 2-3% midpoint and the labor market near full employment. The board has gradually eased policy, cutting rates in February, May, and August to 3.6%, while future moves will depend on incoming data.