Another Australian Interest Rate Cut
October 1, 2019
The dollar overnight advanced 0.7% against the Australian dollar and 0.6% versus the kiwi following news of a third 25-basis point cut since June in the Reserve Bank of Australia’s official cash rate, which now moves to a record low of 0.75%. A statement from that central bank left the door open to even more monetary easing “if needed” to support growth in household incomes and jobs and to better align inflation with its medium-term target. In any case, monetary officials plan to keep interest rates low “for a while.” The rate reduction this past June had been the first since August 2016. There had been two cuts each in 2013, 2015, and 2016.
Copyright 2019, Larry Greenberg. All rights reserved. No secondary distribution without express permission.
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