Institution: Australia has room to cut interest rates, which helps avoid economic recession.

On April 14, Jin10 reported that AMP Chief Economist Shane Oliver stated that Australia should avoid an economic recession triggered by tariffs, especially since there is room for interest rate cuts. The cash interest rate set by the Reserve Bank of Australia during the COVID-19 pandemic was 0.75%, and Oliver pointed out that the current rate of 4.10% gives it ample room to maneuver. He believes that the Reserve Bank of Australia does not need to hold an emergency interest rate meeting, but he thinks there is a 35% chance that the next meeting scheduled for May will end with a 0.5 percentage point rate cut. He added in a report that compared to potential economic growth shocks or increases in commodity supply, the risks to inflation posed by a weaker Australian dollar may be relatively small.