Reserve Bank of Australia
July 4, 2017
Australia’s Official Cash Rate was again left at 1.5%, its level since the last of eight 25-basis point reductions from October 2012 to August 2016. A statement from Governor Lowe conveys no urgency to change the rate soon in either direction. The statement again warns that an appreciation of the Australian dollar would be an unwelcome complication to an unfolding rebalancing of Australia’s economy away from the mining investment boom that previously propelled growth. The statement observes continuing low wage pressure and mixed conditions in housing, projects a gradual strengthening of economic activity, and foresees that inflation will likely “increase gradually as the economy strengthens.”
Copyright 2017, Larry Greenberg. All rights reserved. No secondary distribution without express permission.
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