Australia's RBA keeping track of US policy changes to assess impact

"One of the things we are focused on right now is US policy settings, the impact of these on the global economy and how this flows through to activity and inflation here in Australia; we have been using scenarios, analysis and judgement to assess the policy implications," Sarah Hunter, the central bank's chief economist was quoted as saying by Australian media reports.

RBA cut interest rates in February for the first time since 2020, but added it would move cautiously toward further cuts due to lingering inflation worries.

But since then, the US stock market has fallen sharply as investors grow anxious over unpredictable US policy making. Geopolitical risks have also risen.

ALCHEMPro News Desk (DS)