May 5, 2015

RBA SLASHES RATES TO NEW RECORD LOW

At today’s meeting on monetary policy, the RBA Board has cut the official cash rate to 2 per cent, a new historic low for the Australian market.


RBA Governor Glenn Stevens attributes the following economic factors to today’s decision:

Global Growth: “Is expanding at a moderate pace, but commodity prices have declined over the past year, in some cases sharply.”

Australian Growth: “Looking ahead, the key drag on private demand is likely to be weakness in business capital expenditure in both the mining and non-mining sectors over the coming year. Public spending is also scheduled to be subdued. The economy is therefore likely to be operating with a degree of spare capacity for some time yet."