RBA is still not ruling out rate cut - WSJ

As per Wall Street Journal (WSJ) report, the Reserve Bank of Australia (RBA) board member Ian Harper sees scope for interest rate cuts if consumption across the economy loses momentum entirely.

Key quotes

The thing that is causing an issue for the RBA is slow growth in wages, which is feeding into slow growth in household income

If you start to lose that momentum, that might be the basis of some sort of policy action

While commenting on the dismal retail sales, Harper said, "It is yet another indication that we are not out of the woods"

Progress in the economic recovery is painfully slow

The level of AUD also remains an inhibitor to growth, even after recent falls

You wouldn't want to be jumping the gun and tightening too quickly