Reserve Bank of Australia considers May a ‘good time’ for policy review

Australia's central bank officials remain cautious about future interest rate cuts. According to the minutes of the regulator's April meeting, cited by Bloomberg, the “appropriate time” for policy review will be May.

As board members of the Reserve Bank of Australia (RBA) believe, after the first cash rate cut in four years delivered in February, now it is reasonable to keep it at 4.1%.

The April meeting of the RBA was held just before the announcement of the US plans to impose large-scale tariffs on most countries of the world. This decision caused a shock to global financial markets, triggering serious fluctuations. It also forced financial regulators of many countries, including the RBA, to take a more cautious stance.

However, representatives of the Australian regulator hinted that changes in monetary policy may take place as early as next month. Meanwhile, market participants are leaning toward a 50 basis point rate cut at the May 19–20 meeting and a further reduction in borrowing costs later this year, according to Bloomberg.