Federal Reserve decision creates ‘some optimism’ RBA will lower rates

Sky News Political Editor Andrew Clennell says the US Federal Reserve’s decision to lower interest rates has created “some optimism” the RBA will do the same. The US Federal Reserve has cut interest rates for the first time in four years. The move has been seen by some economists to cool the country’s economy and lower inflation. “An aggressive interest rate cut by the Fed in the United States last week has created some optimism here at home, that despite recent statements by the Reserve Bank Governor Michele Bullock that there won’t be a rate cut this year, that that view could change,” Mr Clennell said. “Key to this is a monthly inflation figure out this week, which the market is predicting will be down substantially.”