Economic Buzz: RBA Suggests Further Monetary Easing More Likely

The policymakers of Reserve Bank of Australia suggested that it was more likely than not that a further easing in monetary policy would be appropriate in the period ahead. According to the minutes of the monetary policy meeting held on June 4, members said developments in the labor market would be particularly important, in assessing whether more easing was appropriate. However, members observed that lowering the interest rate was not the only policy option available to help reducing the jobless rate. The bank had lowered the cash rate by a quarter point to a record low 1.25 percent at the June meeting. This was the first reduction since August 2016.