- James Glynn argues the RBA should cut rates now due to rising global risks, despite market expectations of a May move and the central bank’s cautious stance on inflation.
The Reserve Bank of Australia should cut rates today, argues James Glynn in the Wall Street Journal.
Markets, however, expect the central bank to wait until May for its next move. RBA Governor Michele Bullock remains cautious, citing lingering inflation.
But Glynn contends that global uncertainty now outweighs the RBA’s desire to wait for marginal improvements in inflation data. That uncertainty is set to escalate this Wednesday, with the Trump administration announcing sweeping tariffs on U.S. trading partners—likely triggering retaliatory measures.
Andrew Boak, chief economist at Goldman Sachs Australia, appears to support Glynn’s view: “There are costs [for the RBA] to waiting until May to cut. Waiting is not always a virtue.”
Is Glynn simply chasing a contrarian headline or is there actually a possibility the RBA could act today?
For the exact date and time of these major economic events, import the BlackBull Markets Economic Calendar to receive alerts directly in your email inbox.
