FOREX TradingCharts.com

Financial News: Australia Keeps Key Rate At Record Low

Australia Keeps Key Rate At Record Low

11/05/2019 - 06:00:00 (RTTNews)

(RTTNews) - Australia's central bank maintained its key interest rate unchanged, as widely expected, after cutting it by a quarter point in October.

The board of the Reserve Bank of Australia, governed by Philip Lowe, decided to leave the cash rate unchanged at a record 0.75 percent.

The central bank had lowered the rate by 25 basis points in October, which was the third such reduction this year.

The RBA said the easing of monetary policy since June is supporting employment and income growth and a return of inflation to the medium-term target range.

The bank reiterated that it is prepared to ease monetary policy further if needed to support sustainable growth in the economy, full employment and the achievement of the inflation target over time.

Further, the bank said it is reasonable to expect that an extended period of low interest rates will be required in Australia.

According to RBA, inflation will pick up, but only gradually. In both headline and underlying terms, inflation is expected to be close to 2 percent in 2020 and 2021.

Lowe said the outlook for the Australian economy is little changed from three months ago. RBA forecast economic growth of around 2.25 percent in 2019 before gradually picking up to 3 percent in 2021.

The central bank is set to release its quarterly growth forecast on November 8.

The RBA's optimistic forecasts for GDP growth and the labor market will soon face a reality check and the Bank will have to ease policy by more than most anticipate, Marcel Thieliant, an economist at Capital Economics, said.

The low level of interest rates, recent tax cuts, ongoing spending on infrastructure, the upswing in housing prices in some markets and a brighter outlook for the resources sector should all support growth, Lowe said.

The main domestic uncertainty continues to be the outlook for consumption, the governor noted.

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


China Cuts Short Term Lending Rate For First Time Since 2015 (58 min(s), 41 sec(s) ago)
(RTTNews) - China's central bank unexpectedly cut its short-term lending rate on Monday, which ...Full Story»

Czech Producer Price Inflation Slows In October (02 hr(s), 0 min(s),41 sec(s) ago)
(RTTNews) - Czech producer price inflation eased in October, figures from the Czech Statistical Of ...Full Story»

Singapore Exports Fall Further In October (05 hr(s), 01 min(s), 41 sec(s) ago)
(RTTNews) - Singapore's non-oil domestic exports continued to decline in October, data from En ...Full Story»

Japan Housing Loan Data Due On Monday (27 min(s), 19 sec(s) ago)
(RTTNews) - Japan is on Monday scheduled to release Q3 numbers for housing loans, highlighting a m ...Full Story»

New Zealand Performance Of Services Index Rises To 55.4 - BusinessNZ (19 min(s), 19 sec(s) ago)
(RTTNews) - The services sector in New Zealand continued to expand in October, and at a faster rat ...Full Story»

U.S. Business Inventories Unexpectedly Unchanged In September (20 min(s), 19 sec(s) ago)
(RTTNews) - A report released by the Commerce Department on Friday showed business inventories in ...Full Story»

U.S. Industrial Production Slumps Due To Strike At GM (07 min(s), 19 sec(s) ago)
(RTTNews) - Industrial production in the U.S. fell by much more than expected in the month of Octo ...Full Story»

Growth In New York Manufacturing Activity Unexpectedly Slows In November (43 min(s), 19 sec(s) ago)
(RTTNews) - A report released by the Federal Reserve Bank of New York on Friday unexpectedly showe ...Full Story»

Search

INTERNATIONAL FINANCIAL NEWS

China Cuts Short Term Lending Rate For First Time Since 2015

11/18/2019 - 05:06 AM (RTTNews)
(RTTNews) - China's central bank unexpectedly cut its short-term lending rate on Monday, which ...Full Story>>

Czech Producer Price Inflation Slows In October

11/18/2019 - 04:04 AM (RTTNews)
(RTTNews) - Czech producer price inflation eased in October, figures from the Czech Statistical Of ...Full Story>>

Singapore Exports Fall Further In October

11/18/2019 - 01:03 AM (RTTNews)
(RTTNews) - Singapore's non-oil domestic exports continued to decline in October, data from En ...Full Story>>

Japan Housing Loan Data Due On Monday

11/17/2019 - 17:32 PM (RTTNews)
(RTTNews) - Japan is on Monday scheduled to release Q3 numbers for housing loans, highlighting a m ...Full Story>>

New Zealand Performance Of Services Index Rises To 55.4 - BusinessNZ

11/17/2019 - 17:24 PM (RTTNews)
(RTTNews) - The services sector in New Zealand continued to expand in October, and at a faster rat ...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.