The Australian Federal Reserve Bank has taken a wait-and-see attitude. (Australian Broadcasting Corporation Picture)
The Australian Federal Reserve today announced that the maintenance of official interest rates remains the same, but most of the financial experts are expected to cut at least two times in early 2020.
At a central bank`s November board meeting on Tuesday, it decided to take a wait-and-see attitude to keep official interest at a record low of 0.75 per cent.
This is a 0.25 per cent reduction in the interest rates in June and July of this year, and the central bank, after a third rate of 0.25 per cent for the third time last month, is temporarily not moving.
The local economy, however, is of the view that the central bank`s interest in the next few months will be inevitable.
Philip Lowe, the central bank governor, said in a statement this afternoon that while the global economic outlook is still reasonable, the risk is biased downward.
He said: "The US-China trade and technology disputes continue to affect international trade flows and investment. Due to uncertainties, business and industry companies have reduced spending plans."
"At the same time, the unemployment rate in most developed countries is still low, and sales have accelerated and the rate of inflation remains low."
"The world`s interest rates are at a very low level, and the multi-country central bank has eased monetary policy to respond to sustained downside risks and weak inflation. The mood in the financial markets has been improved in the past month for further easing of the expectations of the bank."
Australia`s economic outlook has not changed much in the past three years, he said.
The central bank has maintained its official interest today, and has been in the projections of most of the economics`s homes.
