Interest Rates Remain On Hold As Reserve Bank Sees “Period Of Stability”

The Reserve Bank of Australia has left interest rates unchanged for the eighth consecutive month.

At its board meeting today, the RBA left the cash rate at 2.5%. The rate was last changed in August last year.

The Reserve’s Governor, Glenn Stevens, said rates were unlikely to change in the near future: “In the Board’s judgement, monetary policy is appropriately configured to foster sustainable growth in demand and inflation outcomes consistent with the target. On present indications, the most prudent course is likely to be a period of stability in interest rates.”

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

Statement by Glenn Stevens, Governor: Monetary Policy Decision

At its meeting today, the Board decided to leave the cash rate unchanged at 2.5 per cent.

Growth in the global economy was a bit below trend in 2013, but there are reasonable prospects of a pick-up this year. The United States economy, while affected by adverse weather, continues its expansion and the euro area has begun a recovery from recession, albeit a fragile one. Japan has recorded a significant pick-up in growth. China’s growth remains generally in line with policymakers’ objectives, though it may have slowed a little in early 2014. Commodity prices have declined from their peaks but in historical terms remain high. [Read more...]


Reserve Bank Leaves Interest Rates On Hold At 2.5%

The Reserve Bank of Australia has left interest rates unchanged, following its board meeting today.

The cash rate stays at 2.5%, where it has been since August last year.

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

At its meeting today, the Board decided to leave the cash rate unchanged at 2.5 per cent.

Growth in the global economy was a bit below trend in 2013, but there are reasonable prospects of a pick-up this year. The United States economy, while affected by adverse weather, continues its expansion and the euro area has begun a recovery from recession, albeit a fragile one. Japan has recorded a significant pick-up in growth, while China’s growth remains in line with policymakers’ objectives. Commodity prices have declined from their peaks but in historical terms remain high. [Read more...]


No Change In Interest Rates This Month

The Reserve Bank of Australia has left interest rates on hold at its monthly board meeting today.

The pre-Christmas cash rate is unchanged at 2.50% where it has been since August.

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

At its meeting today, the Board decided to leave the cash rate unchanged at 2.5 per cent.

Recent information is consistent with global growth running a bit below average this year, with reasonable prospects of a pick-up next year. Commodity prices have declined from their peaks, but generally remain at high levels by historical standards. Inflation in most countries is well contained. [Read more...]


Reserve Bank Leaves Interest Rates Unchanged

The Reserve Bank of Australia has left interest rates unchanged after its monthly board meeting today.

The cash rate stays at 2.5%.

It is the first decision on interest rates under the Abbott government.

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

At its meeting today, the Board decided to leave the cash rate unchanged at 2.5 per cent.

Recent information is consistent with global growth running a bit below average this year, with reasonable prospects of a pick-up next year. Commodity prices have declined from their peaks, but generally remain at high levels by historical standards. Inflation in most countries remains well contained.

Overall, global financial conditions remain very accommodative. Changes in the outlook for US monetary policy have increased volatility in financial markets, but long-term interest rates remain very low and there is ample funding available for creditworthy borrowers.

In Australia, the economy has been growing a bit below trend over the past year. This is expected to continue in the near term as the economy adjusts to lower levels of mining investment. The unemployment rate has edged higher. There has been an improvement in indicators of household and business sentiment recently, though it is too soon to judge how persistent this will be. Inflation has been consistent with the medium-term target. With growth in labour costs moderating, this is expected to remain the case over the next one to two years, even with the effects of the lower exchange rate.

The easing in monetary policy since late 2011 has supported interest-sensitive spending and asset values. The full effects of these decisions are still coming through, and will be for a while yet. The pace of borrowing has remained relatively subdued to date, though recently there have been signs of increased demand for finance by households. There is also continuing evidence of a shift in savers’ behaviour in response to declining returns on low-risk assets.

The Australian dollar rose recently, but is still about 10 per cent below its level in April. A lower level of the currency than seen at present would assist in rebalancing growth in the economy.

At today’s meeting, the Board judged that the setting of monetary policy remained appropriate. The Board will continue to assess the outlook and adjust policy as needed to foster sustainable growth in demand and inflation outcomes consistent with the target.


Reserve Bank Cuts Interests Rates By 0.25% To 2.5%; Lowest In Half A Century

The Reserve Bank of Australia has cut the cash rate by 25 basis points.

The cash rate is now 2.5%, the lowest since the 1950s.

Statement released 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 2.5 per cent, effective 7 August 2013.

Recent information is consistent with global growth running a bit below average this year, with reasonable prospects of a pick-up next year. Commodity prices have declined but, overall, remain at high levels by historical standards. Inflation has moderated over recent months in a number of countries. [Read more...]


Reserve Bank Leaves Cash Rate Steady At 2.75%

The Reserve Bank of Australia has left interest rates unchanged in its monthly decision announced today.

The cash rate remains at 2.75%. The bank last changed the rate in May.

In a statement, the Governor of the bank, Glenn Stevens, said: “The Board judged that the easier financial conditions now in place will contribute to a strengthening of growth over time, consistent with achieving the inflation target. It decided that the stance of monetary policy remained appropriate for the time being. The Board also judged that the inflation outlook, as currently assessed, may provide some scope for further easing, should that be required to support demand.”

Bowen

The new Treasurer, Chris Bowen, has held a press conference to comment on the Reserve Bank’s decision.

  • Listen to Bowen – transcript below (17m)

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

At its meeting today, the Board decided to leave the cash rate unchanged at 2.75 per cent.

Recent information is consistent with global growth running a bit below average this year, with reasonable prospects of a pick-up next year. Commodity prices have declined further but, overall, remain at high levels by historical standards. Inflation has moderated over recent months in a number of countries. [Read more...]


Reserve Bank Leaves Cash Rate Unchanged

The Reserve Bank of Australia has left the cash rate unchanged at 2.75%.

The decision was made at the bank’s monthly board meeting today.

The bank says that “the easier financial conditions now in place will contribute to a strengthening of growth over time, consistent with achieving the inflation target”.

Text of statement from Glenn Stevens, Governor of the Reserve Bank.

At its meeting today, the Board decided to leave the cash rate unchanged at 2.75 per cent.

Information becoming available since the previous meeting is consistent with global growth running a bit below average this year, with reasonable prospects of a pick-up next year. Commodity prices have declined from their peaks but, overall, remain at high levels by historical standards. Inflation has generally moderated over recent months and monetary policy has been eased further in a number of countries.

Financial conditions internationally are very accommodative. Despite the recent rise in sovereign bond yields, funding conditions for sovereigns, well-rated corporates and most financial institutions remain very favourable. [Read more...]