FX.co ★ RBA Bullock Declines to Signal Rate Cuts

Reserve Bank of Australia Governor Michele Bullock has maintained her stance against providing early guidance on potential interest rate cuts, stating it is "too early for us to determine what the path will be for interest rates." In her address at the Chief Executive Women's annual dinner in Melbourne on Thursday, Bullock noted the persistent "financial market and economic volatility" influenced by ongoing tariff issues. However, she reassured attendees that Australia's financial system remains "strong and well placed to absorb shocks from abroad." Bullock emphasized the RBA’s ongoing monitoring of both domestic and international markets, including currency fluctuations and responses from trading partners. Although markets have anticipated a possible 50 basis point cut in May and have even suggested an emergency rate reduction prior to the next board meeting, Bullock reiterated that the board's focus is firmly on its dual mandate: ensuring price stability and achieving full employment. She also compared the current scenario to that of 2008, highlighting that today's risks do not match the severity of past challenges.