Reserve Bank of Australia

November 7, 2017

Australia’s Official Cash Rate has been at a record low 1.5% since August 2016 when such was cut by 25 basis points. Even though the economy has not had a recession for over 20 years, price and wage inflation are currently low. The on-year rise in consumer prices, both total and core, continues to be lower than the target floor. Today’s post-meeting statement expresses concern about elevated household debt. Both this and recent strength in Australia’s currency portend some drag on the expansion of output and jobs. Aussie dollar appreciation is another downside force on inflation. The next quarterly Monetary Policy Statement will be published this Friday.

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

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