Reserve Bank Leaves Interest Rates On Hold

Four days out from the federal election, the Reserve Bank of Australia has left the cash rate unchanged at 2.5% at its monthly meeting.

The bank lowered the cash rate at its last meeting in August, two days after Prime Minister Kevin Rudd called the election.

The bank increased the rate in November 2007, during the election campaign which led to the defeat of the Howard government.

Text of statement by Glenn Stevens, Governor, 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. [Read more...]


Bowen And Hockey Spar Over Interest Rate Decision

The Treasurer, Chris Bowen, has defended today’s interest rate decision by the Reserve Bank, whilst the shadow Treasurer, Joe Hockey, says the economy is weakening.

At a press conference following the Bank’s decision to cut the cash rate by 25 basis points to 2.5%, Bowen said lower interest rates contributed to lower living costs for Australians, particularly in housing. [Read more...]


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...]