RBA Signals Controlled Slowdown in Economic Growth
The Reserve Bank of Australia (RBA) has signaled its intention to cool down both the housing market and the broader economy. In a statement, RBA Assistant Governor Hunter emphasized that the central bank is deliberately slowing down growth below trend, viewing it as an intended outcome rather than an unintended consequence.
Hunter made it clear that he does not expect a recession but rather a controlled slowdown in economic growth relative to its trend. He framed this tightening cycle as a 'managed slowdown' rather than a hard landing or an untimely end to the tightening.
The RBA's policy stance has been a primary focus for market participants, with the AUD/USD trading range around 0.7210 since May 15. The central bank aims to cool the economy and housing channels are being reassessed.