RBA Cuts Rate by 25 bps to 1.25% Record Low to Support Jobs Growth

Viewing 4 posts - 1 through 4 (of 4 total)
  • Author
  • #20833

    The Reserve Bank of Australia cut interest rates…



    RBA governor, Philip Lowe in Sydney after RBA Cut

    Economic forecasts had assumed rates at 1% by year-end
    Rate decision was not in response to deterioration in outlook since May
    The board has not yet made a decision, much depends on labour market (on future cuts)
    Easing aimed at spurring jobs growth, lifting inflation
    Rate cut is to lead lower AUD than otherwise would have been the case
    One option is for fiscal support, including spending on infrastructure
    Says that banks should fully pass through rate cut through mortgage rates
    Well aware that savers will be disappointed by rate cut


    RBA governor, Philip Lowe Q&A session

    If unemployment rate can get to 4.5%, inflation will rise
    Current central estimate for full employment is near 4.5%
    Weaker US dollar would complicate rate outlook
    AUD didn’t move much on rate cut as it was expected
    Not anticipating getting to low rates seen in UK or Canada
    But we have the capacity to do so, if we have to
    Very concerned about threat of global trade wars


    The RBA with Governor Rowe cutting to historic lows in #Australia passed perfectly for Chair #Powell to Slam the Dunk This AM $ES_F #ASX Zoom #BankersManipulationCooperation

Viewing 4 posts - 1 through 4 (of 4 total)
  • You must be logged in to reply to this topic.