Softer US inflation and PMI figures have dimmed the growth outlook, although further labour market tightening may avert a Fed rate cut for the time being.
The trade situation remains the key issue for the global economy, with uncertainty affecting investment and bolstering the case for monetary easing.
European manufacturing continues to decline, while a rise in German unemployment spelled further concern for the eurozone’s largest economy.
China’s weakening manufacturing sector and an economy at risk of further trade disruption has hastened the authorities’ decision to deploy additional stimulus measures.
The RBA cut the cash rate again at its July meeting to 1.00%, proving its willingness to combat weak inflation expectations and protect against downside risks.
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