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 that CPI inflation has drifted to the top of the target range, predicting that such will settle back in light of slower growth in wages, sub-trend growth, and an exchange rate that is higher than falling export commodities warrant.

Copyright 2014, Larry Greenberg.  All rights reserved.  No secondary distribution without express permission.



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