Australia to weigh rates cut next month: Lowe

Bloomberg

Australia’s central bank chief said he’ll consider easing monetary policy at next month’s meeting to drive faster hiring, saying unemployment needs to fall below 5 percent to help return inflation to target.
“A lower cash rate would support employment growth and bring forward the time when inflation is consistent with the target,” Governor Philip Lowe said in a speech in Brisbane on Tuesday. “Given this assessment, at our meeting in two weeks’ time, we will consider the case for lower interest rates.”
Lowe’s confirmation of an easing bias followed the release of minutes of the Reserve Bank’s May policy meeting where it said recently downgraded growth forecasts would’ve been even lower if they hadn’t incorporated current market forecasts for two rate cuts. That came on the heels of regulators earlier today proposing to ease rules to allow home-buyers to borrow more, suggesting an injection in the offing for the housing market and economy.
A concession that easier policy is required reflects persistent labor market slack and mounting evidence of households reining in spending and slowing the economy. Unemployment climbed to 5.2 percent in April and inflation in the first three months of this year was tepid.