What does the US rate cut mean for Australia?

RN Breakfast - Separate stories podcast

While the Reserve Bank is holding interest rates at a 12-year high in Australia, the U.S. Federal Reserve has just announced they will cut U.S. interest rates.

Overnight the Federal Reserve said it will cut interest rates by half-a-percentage point - citing greater confidence about inflation. So, what does this mean for Australia - and could we see the RBA cut rates sooner?

• Guest:Steven Hamilton, Assistant Professor of Economics at George Washington University and a Visiting Fellow at the Tax and Transfer Policy Institute at the Australian National University
• Producer: Lachlan Orr