Reserve Bank governor Michele Bullock has warned Donald Trump’s tariffs could cause a damaging economic slowdown, as the board signals it will not hesitate to cut interest rates if Australia gets pummelled by a global trade war.
Announcing the RBA board had left the cash rate on hold at 4.1 per cent, Bullock warned Australia would be vulnerable to a slowdown in global trade flows caused by the imposition of retaliatory tariffs.
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Michael Read is the Financial Review's economics correspondent, reporting from the federal press gallery at Parliament House. He was previously an economist at the Reserve Bank of Australia and at UBS. Connect with Michael on Twitter. Email Michael at michael.read@afr.com
