RBA Retains Option to Ease

Australia’s central bank indicated it retains the option to ease policy if needed after cutting interest rates two weeks ago, saying slower growth would result in elevated unemployment for longer.

It said a decision to remove forward guidance from this month’s statement announcing the cut, as it did with the February reduction, had been deliberate but still left open the option to alter rates further in future.

“Members did not see this as limiting the board’s scope for any action that might be appropriate at future meetings,” the Reserve Bank of Australia said Tuesday in minutes of the May 5 meeting, when it cut the cash rate to a record 2 percent.