Reserve Bank of Australia

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

Reserve Bank of Australia

September 6, 2016

Glen Steven’s decade-long stewardship as Governor of the Reserve Bank of Australia ends this month, and his last interest rate policy meeting ended with an as-expected decision to leave the Official Cash Rate unchanged at 1.5%. The rate had been sliced by 25 basis points each in February and May of 2015 and May and […] More

Stocks, Bonds, and Dollar Moving South

August 2, 2016

Japan’s Nikkei dropped 1.7%.  Share prices in Europe, led by banks, have so far today declined 3.4% in Greece, 2.4% in Spain, 2.1% in Italy, 1.4% in France, 1.3% in Germany, 0.8% in Switzerland and 0.3% in Great Britain. Equities fell 0.8% in Australia and opened lower in the United States. WTI oil bounced 0.9% […] More

Australian Official Cash Rate Cut to Record Low 1.50%

August 1, 2016

The Reserve Bank of Australia was reduced 50 basis points in late 2011, 100 basis points in 2012, 50 bps in 2013, 50 bps in 2015 and, with this latest cut of 25 basis points, another 50 basis points in 2016.  The assessment of Australia’s economy in a released statement reads similarly to the wording […] More

Wait and See at the RBA

July 5, 2016

The Reserve Bank of Australia as expected retained a 1.75% Official Cash Rate after this month’s Board meeting and released a statement that made a number of points defending its decision. Inflation has been quite low. Given very subdued growth in labor costs and very low cost pressures elsewhere in the world, this is expected […] More

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