Reserve Bank of Australia
December 6, 2016
The Reserve Bank of Australia’s monthly board meeting ended with a decision to leave the Official Cash Rate unchanged at a record low of 1.5% and a statement from Governor Lowe that calls the global inflation outlook more balanced, Australian inflation quite low, Aussie growth this quarter in a temporary slowdown, housing stronger, and the terms of trade partly recovered. All in all, officials seems satisfied with the current policy stance and progress in Australia’s transition away from resource sector-led growth. The statement, like the prior one, warns that Aussie dollar appreciation would be a complicating factor. There were earlier rate cuts this year of 25 basis points each in May and August. Similar-sized reductions even earlier were done in October and December of 2012, May and August of 2013, and February and May of 2015.
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