First Time in 3 Months, Royal Bank of Australia is at it Again
Royal Bank of Australia Cuts Key Rate By 25 Bps
Australia's central bank lowered its key interest rate for the first time in three months.
The board of the Reserve Bank of Australia on Tuesday reduced the cash rate to 1.50 percent from 1.75 percent. The outcome of the meeting came in line with expectations. The bank last slashed its rate by 25 basis points in May of this year, which was the first reduction in a year. The sentiment is for sustainable growth in the economy, with inflation returning to target over time, would be improved by easing monetary policy at this meeting.
Low interest rates supported domestic demand and the lower exchange rate since 2013 helped the traded sector. Although these factors assisted the economy to make the necessary economic adjustments, an appreciating exchange rate could complicate this, the bank noted. Policymakers said the likelihood of lower interest rates exacerbating risks in the housing market has diminished.
Unexpected Japan Consumer Confidence Falls in July
Japan's consumer confidence weakened unexpectedly in July, survey figures from Cabinet Office showed Tuesday. The consumer confidence index fell to 41.3 in July from June's 5-month high of 41.8. Meanwhile, economists had expected the index to rise to 42.0. Among components, the index for willingness to buy durable goods worsened to 41.3 in July from 42.1 a month ago. Similarly, the employment index dropped to 43.7 from 43.7. The index measuring income growth declined by 0.7 points to 40.7 in July. At the same time, the gauge for overall livelihood improved slightly from 40.4 to 40.5. The survey was conducted among 8,400 households on July 15.
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