RBA under pressure for out-of-cycle rate cut amid tariff shock
Some economists are urging the Reserve Bank to act before its next meeting, warning that global trade turmoil demand a faster monetary policy response.
A vocal group of economists is urging Reserve Bank governor Michele Bullock to consider an out-of-cycle rate cut to help buffer Australia against the fallout from Donald Trump’s tariffs.
Independent economist Stephen Koukoulas, a former adviser to then-prime minister Julia Gillard, is leading the push for the central bank to meet earlier than scheduled to deliver a cut aimed at shoring up local economic conditions amid the global turmoil.
“It’s six weeks until the next meeting, as one of the reforms [of the central bank] was not to have monthly meetings … the wheels are falling off the global trade system and there’s clear downside risk,” Koukoulas told Capital Brief.
“[Bullock] could give her press conference, articulate not to panic, that [the RBA is] on the case."
