Australia Cuts Key Rate as Global Threats, Unemployment Rise

The Reserve Bank of Australia (RBA) cut interest rates to 0.75% to protect the economy from global risks. This dovish move surprised markets expecting a hawkish stance. The decision reflects global economic trends, with Australia and New Zealand leading in rate cuts. The RBA's limited room for further cuts contrasts with the Fed's capacity. South Korea faces deflation risks, highlighting global economic sensitivities.

What was the primary reason for the Reserve Bank of Australia's recent interest rate cut?

• To boost exports

• To decrease unemployment

• To shield the economy from global risks

• To increase inflation

How did the market react to the RBA's decision to cut rates?

• It was expected and welcomed

• It was surprising and not anticipated

• It led to a stock market crash

• It caused a rise in inflation

Which countries are leading the trend in rate cut momentum according to the discussion?

• Germany and France

• China and Japan

• Australia and New Zealand

• United States and Canada

What is a significant difference between the economies of Australia/New Zealand and the US?

• Australia and New Zealand are more export-oriented

• The US has a higher export percentage

• Australia and New Zealand have more natural resources

• The US has a larger population

Why is South Korea's economy particularly sensitive to global economic changes?

• It relies on foreign aid

• It is heavily export-oriented

• It has a high inflation rate

• It has a large domestic market