Australia Monetary Policy


RBA cuts interest rates

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

Sample Report

Looking for forecasts related to Monetary Policy in Australia? Download a sample report now.


Australia Economic News

More news

Search form