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Interest Rates Unchanged At Reserve Bank’s Monthly Meeting

The Reserve Bank has left interest rates unchanged at its monthly meeting today.

As was widely expected, the Reserve has left the cash rate at 2.5%.

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

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

Since the Board’s previous meeting, information on the global economy has been consistent with growth having been a bit below trend in 2013, but with reasonable prospects of a pick-up this year. The United States economy continues its expansion and the euro area has begun a recovery from recession, albeit a fragile one. Japan has recorded a significant pick-up in growth, while China’s growth remains in line with policymakers’ objectives. Commodity prices have declined from their peaks but in historical terms remain high. [Read more…]


No Change In Interest Rates This Month

The Reserve Bank of Australia has left interest rates on hold at its monthly board meeting today.

The pre-Christmas cash rate is unchanged at 2.50% where it has been since August.

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

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

Recent information is consistent with global growth running a bit below average this year, with reasonable prospects of a pick-up next year. Commodity prices have declined from their peaks, but generally remain at high levels by historical standards. Inflation in most countries is well contained. [Read more…]


Reserve Bank Leaves Interest Rates Unchanged On Melbourne Cup Day

The Reserve Bank has left interest rates unchanged in a decision announced today.

The cash rate remains at 2.5%, where it has been since August. There have been two 0.25% reductions this year. The cash rate is the lowest it has been in half a century.

Statement issued by Glenn Stevens, Governor of the Reserve Bank of Australia.

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

Recent information is consistent with global growth running a bit below average this year, with reasonable prospects of a pick-up next year. Commodity prices have declined from their peaks, but generally remain at high levels by historical standards. Inflation in most countries is well contained.

Overall, global financial conditions remain very accommodative. Volatility in financial markets has abated recently. Long-term interest rates remain very low and there is ample funding available for creditworthy borrowers. [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…]


Reserve Bank Leaves Interest Rates Unchanged

The Reserve Bank of Australia has left interest rates unchanged after its monthly board meeting today.

The cash rate stays at 2.5%.

It is the first decision on interest rates under the Abbott government.

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

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

Recent information is consistent with global growth running a bit below average this year, with reasonable prospects of a pick-up next year. Commodity prices have declined from their peaks, but generally remain at high levels by historical standards. Inflation in most countries remains well contained.

Overall, global financial conditions remain very accommodative. Changes in the outlook for US monetary policy have increased volatility in financial markets, but long-term interest rates remain very low and there is ample funding available for creditworthy borrowers.

In Australia, the economy has been growing a bit below trend over the past year. This is expected to continue in the near term as the economy adjusts to lower levels of mining investment. The unemployment rate has edged higher. There has been an improvement in indicators of household and business sentiment recently, though it is too soon to judge how persistent this will be. Inflation has been consistent with the medium-term target. With growth in labour costs moderating, this is expected to remain the case over the next one to two years, even with the effects of the lower exchange rate.

The easing in monetary policy since late 2011 has supported interest-sensitive spending and asset values. The full effects of these decisions are still coming through, and will be for a while yet. The pace of borrowing has remained relatively subdued to date, though recently there have been signs of increased demand for finance by households. There is also continuing evidence of a shift in savers’ behaviour in response to declining returns on low-risk assets.

The Australian dollar rose recently, but is still about 10 per cent below its level in April. A lower level of the currency than seen at present would assist in rebalancing growth in the economy.

At today’s meeting, the Board judged that the setting of monetary policy remained appropriate. The Board will continue to assess the outlook and adjust policy as needed to foster sustainable growth in demand and inflation outcomes consistent with the target.


Howard And Costello Respond To Interest Rate Increase

The Reserve Bank of Australia has raised the cash rate 0.25% to 6.50%.

Prime Minister John Howard and Treasurer Peter Costello have held a joint press conference in response to the decision. [Read more…]


Asia’s Role In Australia’s Economic Future: Ian Macfarlane

This is the text of a speech by the Governor of the Reserve Bank of Australia, Ian Macfarlane.

Macfarlane discusses Asia’s role in Australia’s economic future and provides useful statistics on the Australian economy in comparison to the rest of the world. [Read more…]