FOREX TradingCharts.com

Financial News: Australia Keeps Rates Unchanged At Record Low

Australia Keeps Rates Unchanged At Record Low

09/03/2019 - 03:47:00 (RTTNews)

(RTTNews) - Australia's central bank left its key interest rate unchanged at a record low for the second straight meeting as policymakers await to see the impact of earlier rate cuts.

The board of the Reserve Bank of Australia, governed by Philip Lowe, on Tuesday, maintained the cash rate at a record low 1.00 percent, as widely expected.

The bank had earlier reduced its rate in July. The back-to-back rate cut in July was the first since mid-2012.

"The Board will continue to monitor developments, including in the labor market, and ease monetary policy further if needed to support sustainable growth in the economy and the achievement of the inflation target over time," the bank said in a statement.

The RBA reiterated that it is reasonable to expect that an extended period of low interest rates will be required in Australia to make progress in reducing unemployment and achieve more assured progress towards the inflation target.

With less confidence around the economic forecasts and recognition about the weakening activity in the residential construction sector, this decision statement is marginally more downbeat than the statement in August, Bill Evans, an economist at Westpac, said. Westpac is expecting the Board to cut rates by a further 25 basis points at the next meeting in October.

With external headwinds intensifying and the labor market set to weaken further, Marcel Thieliant, an economist at Capital Economics, said he still expects the RBA to cut interest rates to 0.5 percent over the coming months.

Policymakers assessed that growth in Australia is expected to strengthen gradually to be around "trend over the next couple of years." The bank has removed the last month's forecast of around 2.5 percent growth over this year and 2.75 percent in 2020.

The board observed that the main domestic uncertainty continues to be the outlook for consumption.

Inflation is forecast to be a little below 2 percent over 2020 and a little above 2 percent over 2021.

On the housing market, the bank said there are further signs of a turnaround in established housing markets, especially in Sydney and Melbourne.

The decision came ahead of the release of quarterly national accounts by the statistical office on September 4. The economy is forecast to grow 0.5 percent sequentially in the second quarter.

Data released earlier on Tuesday showed that Australia's current account registered its first surplus in 44 years in the second quarter. The current account surplus totaled A$5.85 billion in the June quarter versus a deficit of A$1.12 billion in the preceding quarter.

Meanwhile, retail sales dropped 0.1 percent on month in July, reversing a 0.4 percent rise in June.

For comments and feedback: contact editorial@rttnews.com

Copyright(c) 2019 RTTNews.com. All Rights Reserved

Market News provided by RTTNews

RECENT INTERNATIONAL FINANCIAL NEWS


Bullard Explains Preference For Bigger Interest Rate Cut (02 hr(s), 13 min(s), 14 sec(s) ago)
(RTTNews) - St. Louis Federal Reserve President James Bullard was one of three voting members of t ...Full Story»

Eurozone Consumer Confidence At 4-month High (02 hr(s), 48 min(s), 14 sec(s) ago)
(RTTNews) - Eurozone consumer confidence improved in September to its highest level in four months ...Full Story»

Belgium Consumer Confidence Weakens For Second Month (03 hr(s), 41 min(s), 14 sec(s) ago)
(RTTNews) - Belgium's consumer confidence weakened for a second straight month in September, s ...Full Story»

India Cuts Corporate Tax Rates To Boost Growth (04 hr(s), 39 min(s), 14 sec(s) ago)
(RTTNews) - India's government on Friday announced a reduction in the corporate tax rate to bo ...Full Story»

Finland Current Account Logs Deficit In Q2 (04 hr(s), 49 min(s), 14 sec(s) ago)
(RTTNews) - Finland's current account logged a deficit in the second quarter, Statistics Finla ...Full Story»

Ireland Wholesale Price Decline Slows In August (05 hr(s), 22 min(s), 14 sec(s) ago)
(RTTNews) - Ireland's wholesale prices fell at a slower rate in August, data from the Central ...Full Story»

Slovenia Output Price Inflation Steady In August (05 hr(s), 24 min(s), 14 sec(s) ago)
(RTTNews) - Slovenia's output price inflation stable in August, figures from the Statistical O ...Full Story»

Latvia Producer Price Inflation Slows For Eighth Month (05 hr(s), 23 min(s), 14 sec(s) ago)
(RTTNews) - Latvia's producer price inflation slowed for the eight straight month in August, f ...Full Story»

Search

INTERNATIONAL FINANCIAL NEWS

Bullard Explains Preference For Bigger Interest Rate Cut

09/20/2019 - 10:48 AM (RTTNews)
(RTTNews) - St. Louis Federal Reserve President James Bullard was one of three voting members of t ...Full Story>>

Eurozone Consumer Confidence At 4-month High

09/20/2019 - 10:13 AM (RTTNews)
(RTTNews) - Eurozone consumer confidence improved in September to its highest level in four months ...Full Story>>

Belgium Consumer Confidence Weakens For Second Month

09/20/2019 - 09:20 AM (RTTNews)
(RTTNews) - Belgium's consumer confidence weakened for a second straight month in September, s ...Full Story>>

India Cuts Corporate Tax Rates To Boost Growth

09/20/2019 - 08:22 AM (RTTNews)
(RTTNews) - India's government on Friday announced a reduction in the corporate tax rate to bo ...Full Story>>

Finland Current Account Logs Deficit In Q2

09/20/2019 - 08:12 AM (RTTNews)
(RTTNews) - Finland's current account logged a deficit in the second quarter, Statistics Finla ...Full Story>>
Copyright © 2019. All market data is provided by Barchart Solutions. Information is provided "as is" and solely for informational purposes, not for trading purposes or advice. To see all exchange delays and terms of use, please see disclaimer.