Outcome of the Reserve Bank of Australia monetary policy meeting
Cut from a cash rate of 2% to 1.75%
Quick headlines via Reuters:
- Says commodity prices firmed noticeably from recent lows
- Says economy continuing to rebalance after mining investment boom
- Judged prospects for growth would be improved by easing at this meeting
- Took careful note of housing market
- Says monetary policy has been accommodative for some time
- Rising AUD could complicate economic adjustment
- Indications are that Australian growth is continuing in 2016 probably at more moderate pace
- Says inflation data were unexpectedly low
- Says recent actions by Chinese policymakers supporting near-term growth outlook
- Says uncertainty about global economic outlook and policy settings among major economies continues
- Says at present risk of lower rates in housing sector less than a year ago
Accompanying statement in full: Statement by Glenn Stevens, Governor: Monetary Policy Decision
Well done to all those in the poll who said cut!
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AUD has been smashed lower, down under 0.7600 and under there as I update
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ps. Banks on the wires cutting mortgage rates already! NAB announce a full 25 bp cut to their variable mortgage rate, fully passing the cut through.
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I'm seeing some reports this was a 'surprise' cut .... hmmm, not really. it was a very close call indeed, with OIS pricing sitting around 50% for the past few days.
