Reserve Bank Leaves Cash Rate At 1.50% At Monthly Meeting

The Reserve Bank left the cash rate at 1.50%, at its monthly meeting today.

The bank’s board set the rate at the historic low of 1.50%.

The bank’s Governor, Glenn Stevens, said inflation is “quite low” and is expected to remain that way “for some time”.

Stevens said: “In Australia, recent data suggest that overall growth is continuing, despite a very large decline in business investment, helped by growth in other areas of domestic demand and exports. Labour market indicators continue to be somewhat mixed, but suggest continued expansion in employment in the near term.” [Read more…]


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…]


Political Figures Feature In Queen’s Birthday Honours

Political, vice-regal and government figures feature in the Queen’s Birthday Honours list released today.

The Governor of South Australia, Hieu Van Le, and the Governor of Western Australia, Kerry Sanderson, were each awarded the highest honour, the Companion (AC) in the General Division of the Order of Australia.

ACs were also awarded to the retiring Governor of the Reserve Bank, Glenn Stevens, and to the former Secretary of the Department of Prime Minister and Cabinet under Julia Gillard and Tony Abbott, Ian Watt.

In the Officer division, the AO award, four former MPs were honoured. Ric Charlesworth, the ALP member for Perth from 1983 until 1993, received the award for his service to sport and parliament. Judi Moylan, the Liberal member for Pearce (1993-2013) received the AO for services to parliament, women and advocacy for people with diabetes. Kay Patterson, a Liberal senator from 1987-2008 and former Howard government minister, received the award in recognition of her service to parliament and to public policy, particularly for women, and as a senior academic. Alan Stockdale, the Liberal member for Brighton (1985-99) was honoured for his service as Treasurer in the Victorian Kennett government (1992-99). [Read more…]


Reserve Bank Cuts Interest Rates By 0.25%; First Reduction In A Year

The Reserve Bank of Australia has cut the cash rate by 0.25% to a historic low of 1.75%.

The decision was announced at 2.30pm today. The Governor of the Bank, Glenn Stevens, said: “At its meeting today, the Board decided to lower the cash rate by 25 basis points to 1.75 per cent, effective 4 May 2016. This follows information showing inflationary pressures are lower than expected.”

The cash rate has been 2.0% since May last year.

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

Statement by Glenn Stevens, Governor

Monetary Policy Decision

At its meeting today, the Board decided to lower the cash rate by 25 basis points to 1.75 per cent, effective 4 May 2016. This follows information showing inflationary pressures are lower than expected.

The global economy is continuing to grow, though at a slightly lower pace than earlier expected, with forecasts having been revised down a little further recently. While several advanced economies have recorded improved conditions over the past year, conditions have become more difficult for a number of emerging market economies. China’s growth rate moderated further in the first part of the year, though recent actions by Chinese policymakers are supporting the near-term outlook. [Read more…]


Still No Movement On Interest Rates

The Reserve Bank has again made no change to its cash rate, following today’s Board meeeting.

The cash rate remains at 2.0 per cent, where it has been since May last year.

The Board’s statement says current “low interest rates are supporting demand” and there are “reasonable prospects for continued growth in the economy, with inflation close to target”. [Read more…]


Still No Change To Interest Rates; Cash Rate Stays At 2%

The Reserve Bank has left the cash rate unchanged, following its monthly Board meeting today.

The cash rate remains at 2%, where it has been since May 2015.

The RBA’s Governor, Glenn Stevens, noted that commodity prices have declined substantially and financial markets have been more volatile. It says the expansion of the non-mining parts of the economy strengthened in 2015 and inflation is low.

Stevens said: “Over the period ahead, new information should allow the Board to judge whether the improvement in labour market conditions is continuing and whether the recent financial turbulence portends weaker global and domestic demand. Continued low inflation would provide scope for easier policy, should that be appropriate to lend support to demand.”

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

Statement by Glenn Stevens, Governor: Monetary Policy Decision

At its meeting today, the Board decided to leave the cash rate unchanged at 2.0 per cent.

Recent information suggests that the global economy is continuing to grow, though at a slightly lower pace than earlier expected. While several advanced economies have recorded improved growth over the past year, conditions have become more difficult for a number of emerging market economies. China’s growth rate has continued to moderate. [Read more…]


No Change To Interest Rates; Reserve Bank Leaves Cash Rate At 2%

The Reserve Bank of Australia has left interest rates on hold with its decision today to leave the cash rate unchanged at 2%.

The cash rate has now remained unchanged since May 2015.

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

Statement by Glenn Stevens, Governor

At its meeting today, the Board decided to leave the cash rate unchanged at 2.0 per cent. [Read more…]