Reserve Bank of Australia

June 7, 2017

The June Board meeting on the 6th left Australia’s Official Cash Rate at 1.5% as expected. It was last changed in August 2016, a cut from 1.75%, and similar-sized reductions were authorized in October and December 2012, May and August 2013, February and May 2015, and May 2016. The main revelation from the released statement¬†from Governor Lowe was a slowdown in economic growth during the first quarter of 2017. GDP data reported today confirm that the economy expanded 0.3%, down from 1.1% in the final quarter of 2016, and that on-year growth decelerated to 1.7% from 2.4%. For now officials assume growth will pick up again and hover near 3% in coming years. As before, the statement warns that “an appreciating exchange rate would complicate this adjustment.”

Copyright 2017, Larry Greenberg. All rights reserved. No secondary distribution without express permission.

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