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Peter Martin, Visiting Fellow, Crawford School of Public Policy, Australian National University

Stand by for interest rate cuts: the US is about to start, so expect Australia to follow

United States Jerome Powell Inflation Australia Michele Bullock Reserve Bank the US Fed US Federal Reserve Australia Reserve Bank Interest Rates

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Just three weeks ago, Reserve Bank Governor Michele Bullock declared interest rate cuts unlikely in the next six months. But if there was any doubt about what’s going to happen to global interest rates, the US Federal Reserve chair Jerome Powell removed it on Saturday.

Before an audience of central bankers from around the world (including the deputy governor of Australia’s Reserve Bank Andrew Hauser), Powell declared the long-awaited US rate cuts were about to begin.

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