Reserve Bank of Australia

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

Reserve Bank of Australia

April 5, 2016

Australia’s official cash rate was left at the record low of 2.0% that has prevailed since a 25-basis point cut in May 2015, which followed a similar reduction enacted three months earlier.  Previously, the OCR was reduced in eight steps from 4.75% to 2.5% between November 2011 and August 2013.  A statement released after this […] More

Australian Central Bank Interest Rate Stays at Record Low of 2.0%

December 1, 2015

It’s been a half year since the official cash rate was last cut.  In addition to that 25-basis point cut in May, the OCR was reduced by a similar amount in February and before that from a high of 4.75% prior to November 2011 to 2.5% by August 2013.  A statement released after this month’s […] More

Australian Official Cash Rate Left at Record Low of 2.0%

October 6, 2015

After the expected decision not to change monetary policy, the Reserve Bank of Australia Board published a statement making similar points to the prior monthly meeting release.  The current stance is appropriately accommodative.  Growth is positive, but the GDP level will stay below full employment conditions for some time yet.  In-target inflation is likely over […] More

Reserve Bank of Australia

September 1, 2015

This month’s central bank Board meeting and statement again judged Australia’s record low 2.0% Official Cash Rate to be appropriately accommodative.  Cuts of 25 basis points were decided in February and May of this year.  Earlier reductions in May 2012, June 2012, October 2012, December 2012, May 2013 and August 2013 were also 25 basis […] More

Reserve Bank of Australia Policy Review

August 4, 2015

The RBA Board, unlike at two meetings earlier this year in February and May, did not cut its record low 2.0% further this time but nonetheless released a statement that makes a case for continuing monetary accommodation.  Aside from a falling terms of trade (export/import ratio), “the economy is likely to be operating with a […] More

Reserve Bank of Australia

July 7, 2015

For a second straight monthly meeting, the RBA Board has left the official cash rate at a record low of 2.0%.  Earlier, cuts of 25 basis points were made in February and May of this year, August and May of 2013, and December, October and June of 2012.  In May 2012, the OCR was reduced […] More

A Less Dovish Statement from the Reserve Bank of Australia

June 2, 2015

After cutting the RBA’s official cash rate from 4.75% prior to November 2011 to a currently record low of 2.0% with the most recent reductions happening this year in February and at its prior meeting in May, the central bank Board released a statement today keeping the OCR at 2.0% and shifting forward guidance from […] More