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RBA Leaves Rates Unchanged

The Reserve Bank has again left interest rates unchanged, following its monthly board meeting.

The cash rate is 2.5%. It has been set at this rate since August 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 leave the cash rate unchanged at 2.5 per cent.

Growth in the global economy is continuing at a moderate pace, helped by firmer conditions in the advanced countries. China’s growth remains generally in line with policymakers’ objectives. Commodity prices in historical terms remain high, but some of those important to Australia have declined this year. [Read more…]


No Change To Interest Rates At Reserve Bank Board’s July Meeting

The Reserve Bank of Australia has left interest rates on hold for the eleventh month in a row.

The cash rate of 2.50% remains unchanged. It was last changed in August last year.

The Governor of the Bank, Glenn Stevens, said: “In the Board’s judgement, monetary policy is appropriately configured to foster sustainable growth in demand and inflation outcomes consistent with the target. On present indications, the most prudent course is likely to be a period of stability in interest rates.”

Statement from the Governor of the Reserve Bank, Glenn Stevens.

Statement by Glenn Stevens, Governor: Monetary Policy Decision

At its meeting today, the Board decided to leave the cash rate unchanged at 2.5 per cent.

Growth in the global economy is continuing at a moderate pace, helped by firmer conditions in the advanced countries. China’s growth slowed a little earlier in the year but remains generally in line with policymakers’ objectives. Commodity prices in historical terms remain high, but some of those important to Australia have declined. [Read more…]


Treasurer And Reserve Bank Issue Statement On Monetary Policy

The Treasurer, Joe Hockey, has issued a joint statement with the Reserve Bank of Australia on monetary policy.

AustraliaHockey said the statement “records our agreed understanding of Australia’s monetary and central banking policy framework.” It reiterates the core place of monetary policy, the importance of the inflation target and the government’s commitment to the independence of the bank.

According to Hockey, the statement recognises “for the first time that the financial strength of the Reserve Bank is important for the credibility of its monetary and banking policy operations, and outlines the Treasurer’s role in ensuring the maintenance of a strong Reserve Bank balance sheet”.

Statement from the Treasurer, Joe Hockey.

Today I am releasing, with the Governor of the Reserve Bank of Australia, a joint Statement on the Conduct of Monetary Policy (the Statement).

The Statement records our agreed understanding of Australia’s monetary and central banking policy framework.

The Statement recognises that monetary policy is one of Australia’s core macroeconomic policy tools and its effective conduct is critical to our economic performance and prospects. [Read more…]


RBA Governor’s Statement to House Economics Committee

This is the text of the opening statement to the House of Representatives Standing Committee on Economics by Glenn Stevens, Governor of the Reserve Bank.

When we last met with the Committee in February this year, it was becoming clear that the recovery in the global economy was proceeding faster than many had expected. It was also clear that the strongest performance was in the emerging world, while recoveries in countries that had been at the centre of the financial events of 2007 and 2008 were relatively subdued. Global financial markets had continued to improve, but were paying close attention to the rise in sovereign debt in a number of countries.

At that time, people were talking about an expansion in global GDP of something like 4 per cent in 2010. As it turns out, it looks like the outcome will be stronger than that: current estimates for the year are about 4¾ per cent, which is above trend. The pattern of growth is still rather uneven. The additional strength has been concentrated in the emerging countries, with growth in China and India running at a pace of around 10 per cent in 2010. In contrast, growth of about 2½ per cent for the G7 group, after a contraction of around 3½ per cent in 2009, will leave a considerable margin of spare capacity and particularly of unemployed labour. [Read more…]


Interest Rates Up Again

The Reserve Bank of Australia today increased interest rates by a further 0.25%.

The increase takes the cash rate to 7.25%.

It is the second consecutive increase this year. Interest rates are now at a 12-year high.

  • Listen to Kevin Rudd and Wayne Swan (24m)

This is the text of the statement today from the Reserve Bank.

STATEMENT BY GLENN STEVENS, GOVERNOR

MONETARY POLICY

At its meeting today, the Board decided to increase the cash rate by 25 basis points to 7.25 per cent, effective 5 March 2008. [Read more…]


Reserve Bank Increases Interest Rates

The Reserve Bank of Australia has increased the cash rate by 0.25% to 7.00%.

In a statement accompanying the decision, the Governor of the Reserve Bank, Glenn Stevens, said the Board had “concluded that a tighter monetary policy setting was needed now”.

Stevens cited “significant inflation pressures”, a “slowing” world economy and “fragile” sentiment in international capital and equity markets as the main reasons for the increase.

[Read more…]


Rudd Government Strengthens Independence Of The Reserve Bank

Following its first Cabinet meeting in Brisbane, the Rudd Labor Government has announced measures aimed at strengthening the independence of the Reserve Bank of Australia.

The measures include raising the positions of Governor and Deputy Governor to the same level of statutory independence as the Commissioner of Taxation. Future appointments of the Governor and Deputy Governor will continue to be made by the government of the day but terminations will require parliamentary approval. [Read more…]