RBA live: Interest rates announcement 

Welcome to our live coverage of the announcement of May of RBA. We will keep it updated with the announcement and expert comments of our economists.

Thanks for accompanying us

4:35 pm

This concludes our coverage of the third decision of the Bank of the Reserve Bank on the cash rate by 2025.

Thank you for continuing with our coverage of the rate cut of 0.25% today and being attentive to the reaction coverage of this decision tomorrow.

Productivity growth A ‘Universal’ concern

4:29 pm

Governor Michele Bullock has said that Australia “is not alone” when it comes to navigating the risk of productivity.

“There is a lot of uncertainty about productivity,” he said.

“I can’t tell you what will change it. Most of the other countries are in the same position as us.

“I don’t know what the answer is, but productivity is at the top of the list of what the treasurer is working.”

Bullock: Nothing that the RBA can do about the affordability of the house

4:14 pm

The affordability of housing is a demand and supply problem that the Bank of the Reserve cannot solve, said Governor Michele Bullock at today’s press conference.

“More and more, this problem has the binding path both in state and federal governments and that is where the focus should be,” he said.

“This has been brewing for many years, but we have to focus on our mandate of inflation and employment, which is something really good that we can do for young people and interest rates.”

Labor market the main national risk

4:07 pm

Governor Bullock has said that the labor market in Australia is the most significant risk within the national economy at this time.

“Not everyone agrees with us on this, but that is our judge,” he said.

“That indicates that supply and demand really have not balanced again, so there will still be an inflation risk.”

Bullock Productivity Brushes moves away

3:59 pm

The governor has responded to the concerns that productivity is at a minimum of 60 years in Australia, confirming that it is less a group than unstable inflation.

“If we want wages to increase, it makes it more difficult for salary increases if productivity is not improving,” he acknowledged.

“It is very important and I am happy that the treasurer has identified it as one of the key priorities of the government.”

Possible recession in the next two years

3:52 pm

Governor Michele Bullock has said that RBA scenarios analysis suggests that Australia could face a recession in the next two years.

Answering the media questions, Bullock said:

“That is in the very extreme circumstance. At this time, we are not looking at that, but we must be alert.”

‘New set of challenges that face the economy’

3:43 pm

The governor of RBA, Michele Bullock, has begun his press conference by saying that American tariffs bring “a new set of challenges” to the Australian economy now that inflation has controlled again.

“Commercial policies could lead to supply chain problems, which could increase the prices of some imports, just as we saw in the pandemic,” he said.

“We will have to be alert to upward risks. The Board is still prepared to take more measures if necessary.”

Inflation is expected to remain in the 2-3% target

3:15 pm

The risks of inflation in the Australian economy “become more balanced” according to the Declaration of the RBA, a key factor that determined the possibility of today’s cut.

“The Board judged that flexibility in monetary policy at this meeting was appropriate,” said the statement.

“The risks rise seem to have decreased.”

RBA very uncertain in the global perspective

2:54 pm

The Bank of the Reserve has issued a cautious statement together with today’s tariff cut, marking “considerable uncertainty” around tariffs.

“Geopolitical uncertainties also remain pronounced,” said the statement.

“These developments are expected to have an advertisement about global economic activity, particularly if homes and companies delay expense awaiting greater clarity about perspectives.”

Governor Michele Bullock to speak imminently

2:46 pm

The conclusion of today’s monetary policy meeting will be followed by the usual discourse of Governor Michele Bullock to the media.

The press conference will take place at 3:30 pm and will see Mrs. Bullock share the decision -making process of the Board, as well as her economic perspective.

Reduction of 3.85% cash rate

2:30 pm

The RBA Board has confirmed that the cash rate will be reduced to 3.85% in a movement that markets and economists greatly expected.

The 0.25% cut today means that the cash rate is now 0.5% lower than 12 months ago and the same as in May 2023.

Economist predicts a cut or 0.25%

1:47 pm

The market price implies a very high possibility of a 25 -base cut (BP) this afternoon, according to the Executive Manager of Economics of the Rea Group, Angus Moore.

“Given the underlying inflation, it is now back inside the RBA target band, although alone, I would be surprised if the RBA was not looking to cut,” he said.

“While the market price has suggested some possibility of a 50 bp cut, that seems less likely now.”

Concerns about tariff pressures

1:32 pm

Australia’s economic position could be very easy and drastically if a commercial war between China and the United States begins.

The temporary pause of American tariffs on China announced last week is a positive signal for commercial tensions, he thought that it remains a temporary measure.

It is likely that the expectations for cutting australia tariffs for the year cool if the pressures resurface.

Another record month to the high month for housing prices

1:17 pm

Housing prices throughout Australia reached another record in April, he thought that the growth rate was slower than in the first three months of the year.

If we see more RBA rates cuts, as anticipated, we could see the speed of price growth once again.

The average price of a house in Australia is currently $ 805,000.

Latest large bank predictions

1:01 pm

NAB has predicted a double rate cut today as three more cuts in December.

Westpac anticipates a cut today, as well as in August and November, with ANZ also predicting three more cuts this year.

Commonwealth Bank, the largest lender in Australia, forecasts a trimester rate cut by 2025.

Double rate cut rumors

12:46 pm

The conversation of a rate cut of 0.50% has been abundant since the last meeting of the Board, thanks in large part to the comments made for the first time by the treasurer Jim Chalmers in the period prior to the elections.

The National Australia Bank (NAB) is the only important bank that predicts a double rate cut for today, with chief economist Sally Auld who says that the RBA needs to quickly bring its policy to a more neutral position.

Inflation of the core again in the target band

12:33 pm

The average trimmed inflation is currently at its lowest level by quarterly reading in more than three years.

Upon reaching 2.9% for the year to April 30, it is also back in the target range of 2-3% RBA for the first time since December 2021.

This fall, within the Target range is the key piece of the puzzle, Governor Michele Bullock has repeatedly said that he is waiting to see.

What predicts markets for today?

12:22 pm

The predictions of the market of a rate cut have been stable during the last two weeks in the Australian values ​​exchange rate indicator.

As of May 19, the indicator shows the possibility of a rate cut of 0.5% to 3.60% to 51%.

It is the decision of cash rates

12.02pm

Welcome to our live coverage

Hello and welcome to our live coverage of today’s cash rate.

After maintaining the cash rate at its last meeting, the Australian Reserve Bank is widely predicted that it will announce a cut later this afternoon.

The current cash rate is 4.10%.