Reserve Bank of Australia

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

Reserve Bank of Australia: No Rate Cut Now But Not Ruling Out Future Reduction

April 7, 2015

Australia’s Official Cash Rate of 2.25% since a 25-basis point reduction in February constitutes a record low.  As in March, RBA Board members found the current stance “appropriate” for now.  February’s cut was the first since ones of similar size in May and August 2013.  Cuts totaling 175 bps were also implemented earlier in November […] More

Post-Easter Session Sees Equities and Aussie Dollar Rise

April 7, 2015

Following the advance in the Dow on Monday, the return of markets that had been closed for Easter saw share prices advance 2.2% in China, 1.3% in Japan, 0.8% in Hong Kong and Indonesia, 0.5% in Australia and 0.4% in Singapore, Taiwan and New Zealand.  European stocks have thus far advanced by 1.5% in Great […] More

Reserve Bank of Australia Holds its Fire

March 3, 2015

Analysts were pretty evenly split prior to the March Board meeting between no change in Australia’s official cash rate and a 25-basis point reduction to 2.0%.  It would have been the second straight easing, but officials opted to leave its stance instead unchanged. At today’s meeting the Board judged that, having eased monetary policy at […] More

Reserve Bank of Australia Surprises Many with Decision Not to Ease Further this Month

March 3, 2015

The U.S. dollar fell overnight by 0.5% against the Aussie dollar, 0.4% versus the kiwi, 0.3% relative to the yen and 0.1% vis-a-vis the loonie.  The dollar is unchanged against sterling and the yuan but has risen 0.3% against the Swiss franc and 0.1% relative to the euro. Share prices lost 2.6% in China, 0.7% […] More

First Easing by Reserve Bank of Australia Since August 2013

February 3, 2015

After cutting Australia’s official cash rate to a record low of 2.25% from 2.5%, the RBA released a statement that justified the move on several counts. “Growth is continuing at a below-trend pace, with domestic demand growth overall quite weak…The economy is likely to be operating with a degree of spare capacity for some time […] More

Financial Markets Relieved by Two Developments

February 3, 2015

The new Greek government retreated from talk of a debt write-off and is instead offering a plan to swap its existing debt with new securities.  The plan would give Greece more time to pay off its obligations.  Greek share prices shot up over 8% in response.  The 10-year Greek sovereign debt yields slid two basis […] More

Reserve Bank of Australia

November 4, 2014

The Official Cash Rate has been 2.5% since August 2013 and will continue at that level.  Two 25-basis point cuts administered in May and August of that year followed reductions totaling 125 bps in 2012 and 50 bps in 2011.  The current stance is “accommodative” yet “appropriate,” according to the RBA Board in light of […] More