Reserve Bank of Australia
June 7, 2016
The RBA’s Official Cash Rate, which was reduced for the first time in a year at May’s monthly meeting, was left unchanged at a record low of 1.75% this month. Governor Glenn Stevens released a statement calls the policy stance appropriately accommodative and cited event risks in the global environment like the Brexit referendum. Inflation is projected to remain quite low “given very subdued growth in labor costs and very low cost pressures elsewhere in the world.” The statement observes that rising housing prices, which previously had created concern, are rising again but generating less worry because “considerable supply of apartments is scheduled to come on stream over the next couple of years.”
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