December 3, 2023
The Treasurer, Jim Chalmers, has announced the appointment of the Bank of England’s Andrew Hauser as Deputy Govenor of the Reserve Bank of Australia.
Hauser is currently the Executive Director of Markets at the Bank of England. He has been with the UK’s central bank for over thirty years.
Hauser will take up his appointment early in 2024.
A media release from the Reserve Bank of Australia is shown below:
At its latest meeting, the Reserve Bank of Australia board has maintained existing monetary policy settings.
Meeting, as usual, on the first Tuesday of the month, the Board decided to:
The media release from Governor Philip Lowe is shown below.
These documents from the Australian Bureau of Statistics and the Reserve Bank of Australia clearly show the impact of COVID-19 on the Australian economy in a range of areas.
The document was issued with the publication of economic data showing that Australia’s economic growth declined by 7% in the last quarter, officially putting Australia in recession.
Both documents can be enlarged to full screen and may also be downloaded.
The Reserve Bank has cut the cash rate by 25 basis points to a historic low of 0.75%.
The decision was announced by the Governor of the bank, Philip Lowe, at 2.30pm today.
The cash rate was last changed three months ago, in July, when it was reduced from 1.25% to 1.00%. In June, it had been reduced to 1.25%. The rate had been held at 1.50% since August 2016.
Statement by Philip Lowe, Governor of the Reserve Bank of Australia.
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 0.75 per cent.
While the outlook for the global economy remains reasonable, the risks are tilted to the downside. The US–China trade and technology disputes are affecting international trade flows and investment as businesses scale back spending plans because of the increased uncertainty. At the same time, in most advanced economies, unemployment rates are low and wages growth has picked up, although inflation remains low. In China, the authorities have taken further steps to support the economy, while continuing to address risks in the financial system.
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.