Reserve Bank of Australia

No Interest Rate Change from the Reserve Bank of Australia but New Language about the Australian Dollar

August 1, 2017

The latest monthly RBA meeting kept the Official Cash Rate at 1.5%, a record low since a 25-basis point cut a year earlier. A released statement kept the bank’s macroeconomic forecasts largely unchanged, but new language was introduced in the comment on the Australian dollar: The Australian dollar has appreciated recently, partly reflecting a lower […] More

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 […] More

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 […] More

Australian Monetary Policy Rate Stays at Record Low 1.5%

May 2, 2017

The RBA’s Official Cash Rate has been at 1.5% since 25-basis point reductions in May and August of 2016. A pair of 25-basis point cuts each were also implemented in the final quarter of 2012, May and August 2013 and February and May of 2015. Governor Lowe’s statement explaining today’s action acknowledged that inflation has […] More

Australian Official Cash Rate Left Unchanged at 1.50%

April 4, 2017

The Reserve Bank of Australia’s Board has maintained a 1.5% key interest rate since two of 25-basis point reductions in May and August of last year. Similar cuplets were engineered in October and December of 2012, May and August of 2013, such that February and May of 2015, leaving the rate to two percentage points below its […] More

Australian Official Cash Rate Left Unchanged at 1.50%

March 7, 2017

The Reserve Bank of Australia’s Board retained a record low 1.50% official cash rate at this month’s policy meeting. A released statement is pretty upbeat, observing an improved global economy, quite low inflation with subdued wages, regionally mixed housing market conditions, and higher world commodity prices that are lifting Australian incomes. A gradual rise of […] More

Dollar Mostly Higher but Only Slightly So

March 7, 2017

The dollar shows overnight gains of 0.3% against the Swiss franc and sterling, 0.2% relative to the kiwi, and 0.1% vis-a-vis the yen, loonie and euro. The dollar fell 0.5% against the peso and 0.2% versus the Australian currency. The yuan is steady after unexpected news that Chinese international reserves, which in January dipped under […] More

Reserve Bank of Australia: No Change

February 7, 2017

The central bank Board holds eleven policy meetings each year, skipping only January, which is mid-summer down under. So after a two-month break, officials made the same decision that had been reached at the four final reviews in 2016 by leaving the Official Cash Rate unchanged at a record low of 1.50%. There were two […] More

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 […] More

Reserve Bank of Australia in Wait and See Mode

October 4, 2016

After this month’s Board meeting, Governor Philip Lowe released a statement making the case for not changing the record low 1.5% official cash rate. “Given very subdued growth in labor costs and very low cost pressures elsewhere in the world, quite low inflation is expected to remain the case for some time” despite the moderate economic […] More