The Reserve Bank of Australia (RBA) left the cash rate unchanged at 4.75% at its meeting on 7 June, in a decision that was widely expected by market analysts. The decision marked the sixth consecutive meeting that monetary authorities maintained existing rates. In the accompanying statement, monetary authorities maintained an upbeat assessment of the current situation of the Australian economy. Despite the deceleration of economic activity in Q1, which came as a direct result of the natural disasters experienced at the beginning of the year, the Bank sees activity recovering going forward as rebuilding efforts get under way. The RBA maintains that economic growth will be at trend or higher over the medium term. The RBA believes that CPI inflation will be close to target over the next 12 months, as price pressures in the agricultural sector in the wake of the Yasi cyclone are expected to wane going forward. Therefore, the RBA believes the current mildly restrictive monetary policy stance is appropriate in view of the general macroeconomic outlook.
Australia Monetary Policy
RBA leaves rates unchanged for a sixth consecutive meeting
June 7, 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.
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Nominal retail sales inched up 0.4% in August from the previous month in seasonally-adjusted terms, up from July’s flat reading.
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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.
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The labor market lost 3,900 net new jobs in August compared to the previous month in seasonally-adjusted terms.