Reserve Bank of Australia

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

Reserve Bank of Australia Keeps 2.5% Official Cash Rate Level

October 7, 2014

The statement released after this month’s RBA Board meeting repeats many points from prior statements.  Growth is expected to be a little below trend for the next several quarters.  Modest wage pressure “should keep inflation consistent with the 2-3% target even with lower levels of the exchange rate.”  Monetary policy remains accommodative.  Credit growth is […] More

Reserve Bank of Australia Board Keeps Status Quo

September 2, 2014

Australia kicked off this week’s parade of central bank meetings with the widely predicted decision of retaining a record low 2.5% Official Cash Rate and signaling that this level likely will continue for a period of time.  A statement of explanation reiterates that monetary policy is accommodative yet appropriate “to foster sustainable growth in demand […] More

Reserve Bank of Australia

August 5, 2014

The released statement following the Board’s monthly policy meeting left the 11-month-old 2.5% Official Cash Rate unchanged and signaled that a rate change is still not in the near-term offing.  Governor Stevens notes that sub-trend growth is assumed over the coming year mainly because of a significant decline in resource sector investment.  Officials are unfazed […] More

Australian Official Cash Rate Held at 2.5% Record Low as Expected

July 1, 2014

The statement from Governor Stevens released today asserts that Markets appear to be attaching a very low probability to any rise in global interest rates over the period ahead. Australian growth will be “a little below trend over the year ahead.” Domestic costs remain “contained.” The fundamentally excessive value of the Aussie dollar continues to […] More

June PMIs and Quarterly Japanese Tankan Survey Results Reported

July 1, 2014

The start of the third calendar quarter finds the dollar unchanged overnight against the euro, Swissie, loonie and kiwi, up 0.2% relative to the yen but down 0.2% versus the Aussie dollar and 0.1% vis-a-vis sterling. There’s been a big protest march in Hong Kong on the seventeenth anniversary of its return to Chinese rule.  […] More

Reserve Bank of Australia: Outlook is for a Steady Interest Rate

June 3, 2014

The RBA Board previously cut its Official Cash Rate eight times between November 2011 and August 2013, lowering such by 225 basis points to just 2.5%.  The OCR will continue at that record low level following this month’s policy meeting.  A released statement call the policy stance “accommodative” but “appropriately configured to foster sustainable growth […] More

Steady Dollar as Ezone CPI Report Reinforces Need for ECB Easing

June 3, 2014

The dollar is unchanged against the yen, kiwi and sterling, up by 0.2% versus the loonie and 0.1% relative to the yuan, and down 0.1% overnight relative to the euro, Swiss franc and Australian dollar. Share prices climbed 0.7% in Japan and India, 0.9% in Hong Kong, 0.6% in Indonesia, 0.5% in Taiwan, and 0.3% […] More

Reserve Bank of Australia Retains 2.5% Official Cash Rate as Expected

May 6, 2014

The statement released after the RBA Board’s May monthly policy meeting reads very similarly to April’s statement.  Officials call the current stance appropriate for balancing the goals of “sustainable growth in demand and inflation outcomes consistent with the target” of 2-3% and predict that policy will hold steady for a period of time.  The stance […] More