Reserve Bank of Australia: Official Cash Rate Stays at 2.5%
October 1, 2013
Between November 2011 and August 2013, eight cuts of the OCR were implemented, totaling 225 basis points from a prior high of 4.75%. In a statement after this months meeting, the current stance was called “appropriate,” asserting that “the full effects of these [prior] decisions are still coming through, and will be for a while yet.” The statement talks of growth a bit below potential and inflation being “consistent with the medium-term target.” A pitch for further Aussie dollar depreciation was made less stridently than in the past: “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.”
Copyright 2013, Larry Greenberg. All rights reserved. No secondary distribution without express permission.
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