Overview

• Reserve Bank of Australia Governor Michele Bullock stated it is too early to determine the future direction of interest rates due to volatility from US trade policies.
• Bullock emphasized that Australia’s financial system is strong and well-positioned to handle external economic shocks.
• Recent US trade actions, including a 90-day pause on broader tariff hikes but escalated measures against China, have introduced global market uncertainty.
• Global markets reacted strongly to US policy shifts, with Australian stocks surging 4.5% and the Australian dollar appreciating by nearly US2c.
• The RBA is preparing for its May 19-20 policy meeting, where forthcoming economic data will guide decisions on potential rate adjustments.