Historic Low For Interest Rates As Reserve Bank Lowers Cash Rate To 1.50%

The Reserve Bank today lowered the cash rate 25 basis points to 1.50%, a historic low point for interest rates in Australia.

In the second cut this year, the Bank lowered the cash rate from 1.75%, citing “difficult conditions” in “a number of emerging market economies”. Australia’s terms of trade “remain much lower than they had been in recent years”.

A statement from the Reserve Bank Governor, Glenn Stevens says “low interest rates have been supporting domestic demand and the lower exchange rate since 2013 is helping the traded sector”.

In what could be construed as a plea to the banks, the statement says: “Financial institutions are in a position to lend for worthwhile purposes.”

Text of media release from Glenn Stevens, Governor of the Reserve Bank of Australia.

Monetary Policy Decision

At its meeting today, the Board decided to lower the cash rate by 25 basis points to 1.50 per cent, effective 3 August 2016. [Read more…]


Liberal Party Free Time Advertisements: 2016 Federal Election

These are four freetime advertisements for the Liberal Party, broadcast on ABC television.

The advertisements feature Prime Minister Malcolm Turnbull, Foreign Minister Julie Bishop and Treasurer Scott Morrison.

The Australian Broadcasting Corporation is statutorily obliged to provide free radio and television time to the major political parties during elections. [Read more…]


In Wake Of Brexit, Turnbull Says No Cause For Alarm; Stresses Need For Strong Majority Government

Prime Minister Malcolm Turnbull says there is no cause for Australian to be alarmed by the UK’s vote to leave the European Union.

Speaking shortly after the result became clear today, Turnbull said: “I remind Australians that given that we are living in a world of great opportunities but also great challenges and uncertainties, now more than ever Australia needs a stable majority Coalition Government with a strong economic plan that sets Australia up for a prosperous future.”

The decision to leave the European Union is already causing global financial markets to wobble. The development may be a crucial moment in Australia’s federal election that causes voters to stick with the government.

Transcript of remarks by Prime Minister Malcolm Turnbull on the UK vote to leave the European Union.

TURNBULL: This is a momentous and historic decision and we respect the wishes of the British people, expressed through this referendum. I want to say that Australians, I recognise, will be concerned by the uncertainty and instability in global markets, falls in currencies, including the Australian dollar and in equity markets. [Read more…]


New Liberal Ad: Stick With The Current Mob For A While

The Liberal Party has released a new advertisement on the economy.

Titled Labor’s war on the economy will cost jobs, the ad features an overall-clad workman ruminating on the ALP’s “war” on the economy.

He concludes: “So I reckon we should just see it through and stick with the current mob for a while.”

The ad comes as the election campaign enters its final two weeks. [Read more…]


ALP Ad: Labor’s Positive Plan For The Economy

With the official ALP campaign launch about to take place, the party has released an advertisement on the economy.

ALP
The stage for the ALP’s campaign launch at Penrith. Picture credit: image posted on Twitter by @AustralianLabor

The ad features Opposition Leader Bill Shorten and it titled: Labor’s Positive Plan for the Economy. [Read more…]


Growing Together: ALP Releases Policy Agenda For Tackling Inequality

The ALP has released a policy agenda for tackling inequality.

MacklinThe document, Growing Together, was launched by the Shadow Minister for Families and Payments, Jenny Macklin.

Macklin said inequality is at a 75-year high and 2.5 million Australians live below the poverty line, whilst hundreds of thousands are unemployed.

The Growing Together statement puts forward seven key pillars for tackling inequality: jobs, early childhood, life-long education, work-life balance, longevity, communities and modernising policy development and governance.

It argues that “the current social policy framework was built for, and belongs to, a different era”. The statement claims Growing Together “is an integral part of modern Labor’s policy renewal”. [Read more…]


Reserve Bank Cuts Cash Rate To Historic Low Of 2%

The Reserve Bank has cut interest rates for the second time this year. The cash rate will fall 0.25% to 2.0%.

In its announcement today, the Reserve says: “The Board judged that the inflation outlook provided the opportunity for monetary policy to be eased further, so as to reinforce recent encouraging trends in household demand.”

Statement by Glenn Stevens, Governor of the Reserve Bank of Australia.

At its meeting today, the Board decided to lower the cash rate by 25 basis points to 2.0 per cent, effective 6 May 2015.

The global economy is expanding at a moderate pace, but commodity prices have declined over the past year, in some cases sharply. These trends appear largely to reflect increased supply, including from Australia. Australia’s terms of trade are falling nonetheless. [Read more…]