The Reserve Bank of Australia has cut the key rate to 1%. The decline has happened for the second time in a row. Since the forecasts about global economic growth are depressing, the economy needs support. Thus, the importance of supporting has caused such policies.
In June, the rate was cut by 0.25 points.
Experts agree that trade conflicts and technological disputes prevent stable and reliable inflows of investments in the economies of all countries, not just Australia. For this reason, the balance in the global economy is shifting toward greater risks.
The decision of the Australian regulator is justified by the intention to breathe life into the labor market, raise salaries, and keep inflation in the range between 2 to 3%.
Australia is not the only country, in which the Central Bank is ready to cut rates. The USA, Europe and Japan have expressed their willingness to reduce the key rate too.