Subscribe to our newsletter

Exclusive
Labor missed a trick with mortgages :
RBA cuts cash rate to 1.5 per cent

RBA cuts cash rate to 1.5 per cent

Reporter
— 1 minute read

The Reserve Bank of Australia has made the decision to cut the cash rate following its August board meeting, reducing it by 25 basis points to 1.5 per cent.

The cash rate has held steady since the May board meeting, but the ASX futures market gave a 68 per cent chance of a cut as of 1 August 2016.

The decision to cut follows weak inflation data, which year-on-year showed inflation of only 1 per cent, below the RBA’s target band of 2-3 per cent, and – as noted by the RBA shadow board of the Australian National University’s Centre for Applied Macroeconomic Analysis (CAMA) – this represents the lowest inflation figure since 1999.

Advertisement
Advertisement

Also, the RBA’s trimmed mean CPI rose 1.7 per cent, which the CAMA shadow board noted was still below the target despite being slightly more than expected.

AMP Capital chief economist Shane Oliver commented that while the low inflation figures did not guarantee a rate cut, given that other economic data has been positive of late, the RBA’s decision would prevent inflation expectations from becoming “entrenched” below 2 per cent.

 

 

RBA cuts cash rate to 1.5 per cent
investordaily image
ID logo

related articles

  • Why the opinion polls got it so wrong

    As one of the few politically conservative journalists in a newsroom chock full of left-leaning voters, it’s comforting to know that most ...

  • Labor missed a trick with mortgages 

    EXCLUSIVE Aussie Home Loans boss James Symond has described the mortgage industry’s mammoth lobbying efforts as a “case book study” in...

  • Blue Sky in receivership

    Brisbane group Blue Sky Alternative Investments has gone into receivership following the breach of its $47.7 million loan facility from US-...

promoted stories

Website Notifications

Get notifications in real-time for staying up to date with content that matters to you.