Reserve Bank of Australia
November 1, 2016
Australia’s Official Cash Rate was left unchanged at 1.5% at this month’s central bank Board meeting. A released statement observes a moderate pace of GDP growth of close to its potential trend, a low but partially recovered terms of trade, quite low core inflation around 1.5% that is projected to pick up gradually, mixed labor market indicators, and a well-functioning financial market. The statement warns that a strengthening Australian dollar would complicate completion necessary adjustments in Australia’s economy that are otherwise proceeding satisfactorily. The central bank interest rate was cut earlier this year by 25 basis points each in May and August and is at a record low level currently.
Copyright 2016, Larry Greenberg. All rights reserved. No secondary distribution without express permission.
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