RBA Cash Rate Decision - Cash Rate cut by 0.25% to 1.25% - APAC Update

Xe Corporate APAC

٤ يونيو ٢٠١٩ — 3 min read

The Reserve Bank of Australia just announced the Cash Rate Target is cut by 0.25% to a record low of 1.25%. This was outcome was widely expected and is the first change in the Cash Rate since August 2016.

The pertinent points in the RBA’s accompanying statement were:

RBA’s cash rate target lowered by 0.25% to 1.25%
Needs faster progress in reducing unemployment
Took decision to support employment growth
Monitor developments in labour markets closely
Took decision to provide greater confidence on inflation
Outlook for global economy remains reasonable
To adjust policy to support sustainable growth
Downside risks from trade disputes have increased
Rate cut will help make further inroads into spare capacity
AUD$ at low end of narrow range of recent times
Central scenario for underlying inflation 1.75% in 2019, and 2% in 2020
Economy can sustain lower rate of unemployment
Central scenario for domestic economy to grow around 2.75% in 2019, 2020
Conditions remain soft in housing market
Main domestic uncertainty continues to be household consumption
Some pick-up in growth in household income expected, should support consumption
Little further inroads in spare capacity in labour market of late

The AUD**is a slightly higher in immediate response.**

Current indicative levels are:

AUD-USD 0.6975 / 0.7000
AUD-EUR 0.6195 / 0.6220
AUD-GBP 0.5505 / 0.5530
AUD-JPY 75.30 / 75.55
AUD-NZD 1.0590 / 1.0615

The next RBA Cash Rate policy meeting will be held on Tuesday 2nd July 2019.

Below is the link to the RBA’s media release:

https://www.rba.gov.au/media-releases/2019/mr-19-15.html

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**Australia Morning Update | New Zealand Morning Update**

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