Can You Help?

This website is in imminent danger of being shut down. It has been online since 1995, but the personal circumstances of the owner, Malcolm Farnsworth, are such that economies have to be made. Server costs and suchlike have become prohibitive. At the urging of people online, I have agreed to see if Patreon provides a solution. More information is available at the Patreon website. If you are able to contribute even $1.00/month to keep the site running, please click the Patreon button below.


Become a Patron!


Reserve Bank Cuts Rates To One Per Cent – Second Cut In Two Months

The Reserve Bank of Australia has cut interest rates by another 0.25% to a historic low of 1%.

Today’s announcement is the second reduction in two months.

Statement By Philip Lowe, Governor: Monetary Policy Decision

At its meeting today, the Board decided to lower the cash rate by 25 basis points to 1.00 per cent. This follows a similar reduction at the Board’s June meeting. This easing of monetary policy will support employment growth and provide greater confidence that inflation will be consistent with the medium-term target.

The outlook for the global economy remains reasonable. However, the uncertainty generated by the trade and technology disputes is affecting investment and means that the risks to the global economy are tilted to the downside. In most advanced economies, inflation remains subdued, unemployment rates are low and wages growth has picked up. The slowdown in global trade has contributed to slower growth in Asia. In China, the authorities have taken steps to support the economy, while continuing to address risks in the financial system. [Read more…]


Reserve Bank Cuts Cash Rate By 0.25% In First Movement For Three Years

The Reserve Bank of Australia has lowered the cash rate by 25 basis points to 1.25 per cent, the first change in interest rates in thirty-four months.

In its decision, the Board of the Reserve Bank said the decision was taken “to support employment growth and provide greater confidence that inflation will be consistent with the medium-term target”.

The Board referred to the growth in “trade disputes” and said that growth in international trade remains weak.

Monetary Policy Decision – Statement by Philip Lowe, Governor

At its meeting today, the Board decided to lower the cash rate by 25 basis points to 1.25 per cent. The Board took this decision to support employment growth and provide greater confidence that inflation will be consistent with the medium-term target. [Read more…]


At Year’s End, Reserve Bank Leaves Cash Rate At 1.5%

As 2016 ends, the Reserve Bank of Australia has left the cash rate at 1.5%.

At its monthly board meeting, the bank made no change to the rate that has been in place since August. Movements in the cash rate are generally reflected in movements in commercial interest rates.

In a statement, the bank’s Governor, Philip Lowe, repeated points made in previous months about rising commodity prices, the effective functioning of financial markets and Australia’s transition from the mining investment boom. It says unemployment has decreased, inflation is low and the housing market has strengthened.

At the beginning of the year, the cash rate was 2.0%. The bank reduced the rate by 0.25% in May and by 0.25% in August. The rate is at an historic low point.

Statement by Philip Lowe, Governor of the Reserve Bank of Australia.

Monetary Policy Decision

At its meeting today, the Board decided to leave the cash rate unchanged at 1.50 per cent.

The global economy is continuing to grow, at a lower than average pace. Labour market conditions in the advanced economies have improved over the past year. Economic conditions in China have steadied, supported by growth in infrastructure and property construction, although medium-term risks to growth remain. Inflation remains below most central banks’ targets, although headline inflation rates have increased recently. Globally, the outlook for inflation is more balanced than it has been for some time. [Read more…]


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…]


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…]