As expected the Reserve Bank of Australia has left the official cash rate target unchanged at 2%
I'll get the pertinent comments from Glenn Stevens' accompanying Statement up ASAP, and the link to the full text
- Scope for further easing if needed
- Monetary policy needs to be accommodative
- Low rates supporting demand
- AUD adjusting to significant declines in commodity prices
- Says to judge whether recent fin mkt turbulence could lead to weaker growth
- Notes China growth rate has continued to moderate
- Says reasonable prospects for continued growth
- Says expansion in non-mining parts of the economy strengthened during 2015
- Says inflation likely to remain low over the next year or two
- Says new information should allow board to help judge whether recent pick-up in employment is continuing
Quick Headlines via Reuters
I said in my preview earlier today that the Statement would try not to sound too upbeat. Its difficult though when employment gains are the strongest in a decade and inflation is well under control, running at the bottom of the RBA's target band.
Governor Stevens' accompanying statement has flagged concerns and risks, but overall it seems he is pretty happy.
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Full text: Statement by Glenn Stevens, Governor: Interest Rate Decision
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I posted previews of today's meeting results here:
- RBA decision & statement today. But the most important AUD clue will be missing.
- RBA preview: No cut today, but a question on the AUD
- Australia - Preview of the RBA monetary policy meeting Tuesday 2 February 2016
- RBA meets February 2, preview of what's expected
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Coming up on Friday, the quarterly Statement on Monetary Policy, which sets out the Bank's assessment of current economic conditions, both domestic and international, along with the outlook for Australian inflation and output growth.
