Australian Central Bank Interest Rate Stays at Record Low of 2.0%
December 1, 2015
It’s been a half year since the official cash rate was last cut. In addition to that 25-basis point cut in May, the OCR was reduced by a similar amount in February and before that from a high of 4.75% prior to November 2011 to 2.5% by August 2013. A statement released after this month’s meeting “observed that the outlook for inflation may afford scope for further easing of policy, should that be appropriate to lend support to demand.” Officials project spare capacity in Australia “for some time yet,” and they expect in-target inflation as a consequence. However, growth prospects appear somewhat improved, so it was felt that the current policy stance remains appropriate.
Copyright 2015, Larry Greenberg. All rights reserved. No secondary distribution without express permission.
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