Business News

5 things you need to know today

1. Following the Reserve Bank's decision to cut interest rates to a record low of 1.25% yesterday, RBA governor Philip Lowe said that banks should pass on the cut in full to ensure that "the economy receives the full benefit of today’s policy decision ".

2. While the Commonwealth Bank and NAB both passed on the cut in full, ANZ announced it would cut variable mortgage rates by 18 basis points and Westpac by 20 basis points.

3. Federal Reserve chairman Jerome Powell indicated that a cut for interest rates in the US may be on the cards due to trade disputes with China and Mexico. "We are closely monitoring the implications of these developments for the US economic outlook and, as always, we will act as appropriate to sustain the expansion," Powell said.

4. Wall Street stocks surged in response the Fed chairman's speech, with all three major indexes posting their second biggest gains of the year so far. The Dow Jones rose 2.06% to 25,332.18, the S&P 500 gained 2.14% to 2,803.27 and the Nasdaq lifted 2.65% to 7,527.12.

5. Prime Minister Scott Morrison said that the trade war between the US and China "is testing the system as never before, and is putting the prosperity and living standards of billions of people at risk" in a speech to the Australia-UK Chamber of Commerce in London.

Published on: Wednesday, June 05, 2019

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