Bitcoin price today: gains to $120k, near record high on U.S. regulatory cheer
Investing.com-- Australian Treasurer Jim Chalmers warned on Monday that the nation’s economy is vulnerable to the adverse effects of escalating global trade tensions, stemming from recent U.S. tariff actions.
He indicated that these developments could prompt the Reserve Bank of Australia (RBA) to consider multiple interest rate cuts this year to support economic stability.
Chalmers highlighted that the broader damage stems from the anticipated slowdown in both the U.S. and Chinese economies, triggered by the global trade war resulting from the U.S. tariff policies.
The tariffs include a blanket 10% duty on all imports into the U.S., with higher rates of up to 49% on select nations. Australia faces 15% tariffs on goods such as wine, beef, and lithium, which are key exports to the U.S.
He said the circumstances may prompt the RBA to lower interest rates by as much as 50 basis points in May, though he declined to speculate ahead of the central bank’s decision.
Chalmers said the decline in the Australian dollar’s AUD/USD pair, dropping below 60 U.S. cents for the first time since the COVID-19 pandemic, was due to reinforced expectations of multiple RBA rate cuts this year.