Australia's Central Bank Stays Aloof from Global Easing

Institutional analysis points out that the Reserve Bank of Australia (RBA) is increasingly becoming an outlier among global central banks as the US Federal Reserve initiates a loosening cycle by cutting the federal funds rate by 50 basis points. Most economists expect Australia to hold off on rate cuts until next year, possibly as late as May. Thursday's release of robust August employment growth further underscores this contrast, leaving little room for the RBA to even begin discussing near-term rate reductions.

While RBA Governor Philip Lowe may face criticism for not joining the easing club, the central bank will be keeping a close eye on core inflation, which remains elevated and concerning.

(Source: JinShi)