On 1 November, the Reserve Bank of Australia (RBA) cut the cash rate by 0.25 percentage points from 4.75% to 4.50%, in a move which was widely expected by the markets. The decision marks the first rate cut for nearly a year, after 10 consecutive meetings in which monetary authorities have kept the rates unchanged. According to monetary authorities, recent information is consistent with a moderation in the pace of global growth, though fears of a major downturn have not been borne out so far. The RBA also sees growth moderating in the domestic economy. While investment in the resources sector continues to pick up, a strong exchange rate and prudent household behaviour are having a noticeable dampening effect? on economic activity. With regard to inflation, the RBA believes that it is likely to be consistent with its 2-3% target over next year and the following. Finally, monetary authorities concluded the statement suggesting a shift from a mildly restrictive monetary policy stance towards a more neutral approach, consistent with achieving sustainable growth and 2-3% per cent inflation over time?. According to analysts, the phrasing suggests that RBA is now open to further rate cuts going forward
Australia Monetary Policy
RBA cuts interest rates
November 1, 2011
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Australia Economic News
October 12, 2016
The Westpac-Melbourne Institute Survey of Consumer Sentiment increased 1.1% in October as the index rose from September’s 101.4 to 102.4.
October 11, 2016
The business confidence index published by the National Australia Bank (NAB) was stable in September at August’s 6 points.
October 5, 2016
Nominal retail sales inched up 0.4% in August from the previous month in seasonally-adjusted terms, up from July’s flat reading.
October 4, 2016
At its 4 October monetary policy meeting, the Reserve Bank of Australia (RBA) kept its policy rate steady at an all-time low of 1.50% after cutting its rate by 25 basis points twice this year, once in May and once in August.
September 15, 2016
The labor market lost 3,900 net new jobs in August compared to the previous month in seasonally-adjusted terms.