Following are the key headlines from the January RBA monetary policy statement (via Reuters): Low rates supporting the economy. Progress on unemployment, inflation expected to be gradual. Central scenario for GDP growth to average around 3 pct this year. Central scenario for GDP growth to slow in 2020 due to weaker resource exports.
The Australian dollar rose sharply after a hawkish statement from the central bank, which left interest rates unchanged at 1.50%. In the statement, governor Philip Lowe said that the country’s economy was doing well with the unemployment rate expected to reduce to below 5%. Inflation rose by 1.8% in 2018 and is expected to pick up.
Following are the key headlines from the November RBA monetary policy statement (via Reuters): "Low rates supporting the economy. Progress on unemployment, inflation expected to be gradual. Housing markets have slowed in Sydney, Melbourne. Credit conditions tighter than they have been for some time."
Bill Evans, Research Analyst at Westpac, points out that the RBA decided to leave the cash rate at 1.50% and remains cautious around the outlook for the consumer while retaining a conservative unemployment forecast.
The Reserve Bank of Australia (RBA) is Australia's central bank and derives its functions and powers from the Reserve Bank Act 1959. Its duty is to contribute to the stability of the currency, full employment, and the economic prosperity and welfare of the Australian people. It does this by setting the cash rate to meet an agreed medium-term inflation target, working to maintain a strong financial system and efficient payments system, and issuing the nation's banknotes.
The RBA provides certain banking services as required to the Australian Government and its agencies, and to a number of overseas central banks and official institutions. Additionally, it manages Australia's gold and foreign exchange reserves.
Philip Lowe is an Australian economist, born in Wagga Wagga, New South Wales. He is the current Governor of the Reserve Bank of Australia, having succeeded Glenn Stevens on 18 September 2016. He was previously deputy governor under Stevens from 2012.
Lowe on his profile and Wikipedia.
The World Interest Rates Table reflects the current interest rates of the main countries around the world, set by their respective Central Banks. Rates typically reflect the health of individual economies, as in a perfect scenario, Central Banks tend to rise rates when the economy is growing and therefore instigate inflation.
