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Reserve Bank Sets Historic Low 0.75% Cash Rate

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. [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…]