Register
Login:
Share:
Email Facebook Twitter


Exclusive: Hayden Locke, CEO Emmerson plc, a low cost high margin potash investment
Richard Slape, Oil consultant - Avoiding Losers and Picking Winners, his personal strategy


Alliance News


RBA Minutes: Current Monetary Policy Remains Appropriate

Tue, 21st Jul 2015 03:18


CANBERA (Alliance News) - Members of the Reserve Bank of Australia's monetary policy board said that the central bank's present stance is appropriate, minutes from the bank's July meeting revealed on Tuesday.

The members are comfortable with the benchmark lending rate where it is, although they did not absolutely rule out another rate cut - instead calling the prospect data dependent.

"Information to be received over the period ahead on economic and financial conditions would continue to inform the Board's assessment of the outlook and hence whether the current stance of policy remained appropriate to foster sustainable growth and inflation consistent with the target," the minutes said.

At the meeting, the RBA maintained its key interest rate at the record low 2.00% for the second straight month. The bank had lowered the rates by 25 basis points each in February and May. Policymakers observed that the Australian dollar has declined noticeably against a rising US dollar over the past year. Further depreciation seems both likely and necessary, particularly given the significant declines in key commodity prices.

"Commodity prices had fallen further and the Australian dollar had depreciated over the past month. Although the exchange rate against the US dollar was close to levels last seen in 2009, the decline in the Australian dollar had been more modest in terms of a basket of currencies," the bank said.

According to the RBA, the economy is likely to be operating with a degree of spare capacity for some time yet. With very slow growth in labor costs, inflation is expected to remain consistent with the target over the next one to two years, even with a lower exchange rate. Despite fluctuations in markets associated with the respective developments in China and Greece, long-term borrowing rates for most sovereigns and credit worthy private borrowers remain remarkably low, the RBA noted.

"In light of current and prospective economic circumstances and financial conditions, the board judged that leaving the cash rate unchanged was appropriate," the bank said.

Copyright RTT News/dpa-AFX

Alliance News



Back to Alliance News


Share Price, Share Chat, Stock Market news at lse.co.uk
FREE Member Services
- Setup a personalised Watchlist and Virtual Portfolio.
- Gain access to LIVE real-time Regulatory News (RNS).
- View more Trades, Directors' Deals, and Broker Ratings.
Share Price, Share Chat, Stock Market news at lse.co.uk




Datafeed and UK data supplied by NBTrader and Digital Look. While London South East do their best to maintain the high quality of the information displayed on this site,
we cannot be held responsible for any loss due to incorrect information found here. All information is provided free of charge, 'as-is', and you use it at your own risk.
The contents of all 'Chat' messages should not be construed as advice and represent the opinions of the authors, not those of London South East Limited, or its affiliates.
London South East does not authorise or approve this content, and reserves the right to remove items at its discretion.