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…]


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…]


Reserve Bank Leaves Interest Rates On Hold; Cash Rate Stays At 2%

At its final meeting for the year, the board of the Reserve Bank of Australia has decided to leave interest rates on hold.

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

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 leave the cash rate unchanged at 2.0 per cent.

The global economy is expanding at a moderate pace, with some softening in conditions in the Asian region, continuing US growth and a recovery in Europe. Key commodity prices are much lower than a year ago, reflecting increased supply, including from Australia, as well as weaker demand. Australia’s terms of trade are falling. [Read more…]


Interest Rates Still On Hold As Reserve Bank Maintains 2% Cash Rate

The Reserve Bank’s cash rate remains unchanged at 2%, following today’s meeting of the bank’s board.

The rate was last changed in May 2015, when it was cut by 0.25% to 2%.

In a statement on behalf of the Board, the bank’s Governor, Glenn Stevens, noted that “other major central banks are continuing to ease policy”. He said: “In Australian, the available information suggest that moderate expansion in the economy continues.”

“Low interest rates are acting to support borrowing and spending,” Stevens said.

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 2.0 per cent.

The global economy is expanding at a moderate pace, with some further softening in conditions in China and east Asia of late, but stronger US growth. Key commodity prices are much lower than a year ago, in part reflecting increased supply, including from Australia. Australia’s terms of trade are falling. [Read more…]