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…]