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The Reserve Bank of Australia is expected to cut interest rates for the third time this year, but remains cautious about the policy outlook.
Jin10 data reported on August 11 that as inflationary pressures ease, the Reserve Bank of Australia may implement its third interest rate cut of the year this week. However, Chairman Philip Lowe is expected to maintain a cautious stance on the monetary policy outlook. Institutional surveys indicate that traders and most economists expect the Reserve Bank of Australia to lower the cash rate by 25 basis points to 3.6% on Tuesday, bringing the total reduction in this easing cycle to 75 basis points. Following the decision announcement, the bank will also release its quarterly macroeconomic forecast update report. This meeting comes just five weeks after the Reserve Bank of Australia unexpectedly held rates steady, despite strong market expectations for a rate cut. Latest data shows that the core inflation measure (trimmed mean) of the Reserve Bank of Australia has fallen to 2.7%, close to the midpoint of the 2%-3% target range. RBA Deputy Governor Guy Debelle described this result as "very reassuring."