RBA Governor Explains Why Australia Lags Behind in Interest Rate Cuts

Bullock stated that Australia sets its interest rates based on domestic circumstances, noting that we have been less restrictive compared to some others.

Governor of the Reserve Bank of Australia (RBA) Michele Bullock speaks to the media during a press conference in Sydney, Australia, on Feb. 6, 2024. AAP Image/Bianca De Marchi

Reserve Bank of Australia (RBA) Governor Michele Bullock has broken her silence on why Australia is lagging behind other countries in cutting interest rates.

Bullock explained that Australia tailors its interest rates to domestic circumstances, noting, “We have a floating exchange rate, so we are able to do that.”