Australian monetary policy

Reserve Bank of Australia

March 1, 2016

The RBA Board decided to keep its official cash rate at 2.0%, the level since a 25-basis point cut last May.  Between November 2011 and then, there were ten rate reductions totaling 275 basis points, including two 25-basis point moves in the first half of 2015.  A statement released after the March policy meeting observes […] More

Australian Official Cash Rate Held Steady at Record Low of 2.0%

February 2, 2016

The Reserve Bank of Australia released a statement today after its first Board meeting of 2016.  It observes that “the exchange rate has continued its adjustment to the evolving economic outlook” and makes the following other points: Recent Australian economic growth has remained positive but not quite as good as was expected. A four-year-long deterioration […] More

Reserve Bank of Australia

December 2, 2014

The 2.5% official cash rate since August 2013 was retained, and the preference for a period of interest rate stability for a period of time with a stance that is appropriately accommodative was reaffirmed in a released statement from Governor Glenn Stevens.  Sub-trend growth and in-target inflation are projected.  The statement observes a further increase […] More

Reserve Bank of Australia: No Interest Change Expected and None Delivered

March 4, 2013

The Official Cash Rate was left at 3.0%.  It has been at that level since since a 25-basis point cut in December, the sixth ease since November 2011.  A statement released by officials was dovish in tone and similar to the one released in February.  The next move is more likely to be a seventh […] More

A Surprise Easing at the Reserve Bank of Australia

October 2, 2012

The RBA’s Official Cash Rate has been sliced by another 25 basis points to 3.25%, its lowest level since October 2009 and just 25 bps above the Great Recession low.  Today’s was the first reduction since a 25-bp move in June.  Before then, The OCR was also cut by 50 bps in May, and by […] More

Australian Monetary Policy Left as Is

September 4, 2012

The Reserve Bank of Australia Board decided to retain a 3.5% Official Cash Rate level after meeting earlier today.  This was the third such monthly decision in a row.  In 2009-10, the OCR was hiked seven times from 3.0% to 4.75%, but four cuts since last November including one of 50 basis points this past […] More

Reserve Bank of Australia: Wait and See

August 7, 2012

At today’s meeting, the Board judged that, with inflation expected to be consistent with the target and growth close to trend, but with a more subdued international outlook than was the case a few months ago, the stance of monetary policy remained appropriate. So concludes the latest RBA Policy Board statement.  Several points are made […] More