The Reserve Bank's keeping a watchful eye on global trade developments. 

It's lowered the Official Cash Rate by 25-basis points to 3.5%, with another cut expected next month. 

But it's still waiting to see how trade barriers affect inflation before deciding what to do after that. 

Infometrics Principal Economist Brad Olsen told Andrew Dickens the central bank is right to take a wait-and-see approach. 

He says what's become very clear over the past couple of days, and again this morning, is how everything can change in an instant. 

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