The Reserve Bank of Australia has pointed to global economic uncertainty in its statement on monetary policy following its decision to hold the cash rate at 3.85 per cent.
“Uncertainty in the world economy remains elevated,” it said. “While the final scope of US tariffs and policy responses in other countries remains unknown, financial market prices have rebounded with an expectation that the most extreme outcomes are likely to be avoided. Trade policy developments are nevertheless still expected to have an adverse effect on global economic activity.”
