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…]