Part 4/10:
When asked whether a rate cut might still occur in August, O'Brien deferred to the RBA's own projections. He acknowledged global economic uncertainty and contrasted Australia’s cautious approach with other jurisdictions like Europe, Canada, and New Zealand— which have already implemented multiple rate cuts prior to Australia’s first reduction after a series of twelve increases under the current government.
Moreover, recent threats of tariffs, such as the proposed 200% tariff on Australian pharmaceutical exports by the United States, have added to the economic strain. O'Brien expressed concern that such measures underscore the importance of strong diplomatic efforts, criticizing the federal government’s perceived lack of focus on strengthening US-Australia relations.