Trump’s China tariffs ‘could bring forward RBA rate cuts’
Big US tariffs on China could slow its economy and force the Reserve Bank of Australia to cut interest rates by more next year, some economists say.
While KPMG warned a global trade war could push up the price of goods around the world and lead the RBA to lift rates in a worst-case scenario, other analysts think Trump’s tariffs could weaken the Australian economy and push inflation lower.
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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
John Kehoe is economics editor at Parliament House, Canberra. He writes on economics, politics and business. John was Washington correspondent covering Donald Trump’s election. He joined the Financial Review in 2008 from Treasury. Connect with John on Twitter. Email John at jkehoe@afr.com
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