Reserve Bank of Australia Extends Rate Pause as Governor Lowe Exits

The transcript discusses the Reserve Bank of Australia's (RBA) current monetary policy stance, focusing on the optionality left for the incoming governor. The RBA has paused rate hikes to assess the economic impact, with future tightening dependent on economic developments. Some economists foresee potential economic acceleration in Australia, which might prompt another rate hike. However, the RBA is likely to maintain the current cash rate until the new governor assumes office.

What risks do some economists see for the Australian economy in the latter half of the year?

What is the expected action of the current policy makers until the new governor takes over?