Reserve Bank of Australia

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

Reserve Bank of Australia

June 7, 2016

The RBA’s Official Cash Rate, which was reduced for the first time in a year at May’s monthly meeting, was left unchanged at a record low of 1.75% this month. Governor Glenn Stevens released a statement calls the policy stance appropriately accommodative and cited event risks in the global environment like the Brexit referendum.  Inflation is projected […] More

Reserve Bank of Australia’s Official Cash Rate Reduced to 1.75%

May 3, 2016

The 25-basis point OCR reduction was not anticipated but likewise is not shocking juxtaposed against such recent data reports as these: Consumer prices had been expected to rise 0.2% last quarter but instead fell 0.2%, resulting in a 0.4 percentage point drop in the year-on-year pace to 1.3%. Core CPI inflation decelerated by 0.4-0.5 percentage […] More

Risk Aversion Returns after Upbeat Monday

May 3, 2016

Stocks, Treasury yields, and oil prices faltered Tuesday for various reasons. Disappointing Chinese, British and Irish manufacturing purchasing manager surveys reported. Mediocre first-quarter U.S. corporate reports in the background. EU Commission’s Spring Forecast revised 2016 and 2017 projected growth marginally downward. Credibility of BOJ policy very low.  Japanese market shut for first of three consecutive […] More