In a media release on the 1st of August, the RBA announced that the board have decided to leave the cash rate unchanged at 15 per cent.
Key points and reasons for an unchanged cash rate:
- Continuing improvement in conditions in the global economy.
- Wage growth and inflation remain subdued in most countries.
- Forecasts for the Australian economy are largely unchanged.
- Increase in employment levels across all states.
- Inflation data proved to be as expected.
- Appreciation of the Aussie dollar.
- Variation in housing conditions across the country.
- Low interest rates are continuing to support the Australian economy.
Click here to view the statement by Philip Lowe, Governor: Monetary Policy Decision
About the Author
Dr Shane Oliver, Head of Investment Strategy and Economics and Chief Economist at AMP Capital is responsible for AMP Capital’s diversified investment funds. He also provides economic forecasts and analysis of key variables and issues affecting, or likely to affect, all asset markets.
Important note: While every care has been taken in the preparation of this article, AMP Capital Investors Limited (ABN 59 001 777 591, AFSL 232497) and AMP Capital Funds Management Limited (ABN 15 159 557 721, AFSL 426455) makes no representations or warranties as to the accuracy or completeness of any statement in it including, without limitation, any forecasts. Past performance is not a reliable indicator of future performance. This article has been prepared for the purpose of providing general information, without taking account of any particular investor’s objectives, financial situation or needs. An investor should, before making any investment decisions, consider the appropriateness of the information in this article, and seek professional advice, having regard to the investor’s objectives, financial situation and needs. This article is solely for the use of the party to whom it is provided.
