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Interest Rates: Reserve Bank Maintains Monetary Policy Settings

Jul 06, 2021

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:

  • retain the April 2024 bond as the bond for the yield target and retain the target of 10 basis points
  • continue purchasing government bonds after the completion of the current bond purchase program in early September. These purchases will be at the rate of $4 billion a week until at least mid November
  • maintain the cash rate target at 10 basis points and the interest rate on Exchange Settlement balances of zero per cent.

The media release from Governor Philip Lowe is shown below.


Filed Under: Reserve Bank Tagged With: ,

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

Jul 02, 2019

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…]

Filed Under: Reserve Bank Tagged With:

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

Jun 04, 2019

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…]

Filed Under: Morrison, Reserve Bank Tagged With: ,

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

Dec 06, 2016

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…]

Filed Under: Economy, Reserve Bank Tagged With: ,
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