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The Australian Central Bank Keeps Interest Rates Unchanged and the Australian Dollar Shrinks

The Reserve Bank of Australia (RBA) decided on Tuesday (September 3) to keep the official cash rate (OCR) at a historical low of 1%. As expected by the market, the Australian dollar has swelled. However, the RBA hinted that it may cut interest rates again in the short term.

The Harvest XQ Global Winner System quotation shows that the Australian dollar against the US dollar after the announcement of the RBA, once jumped to 0.6712 at 12:32 on the 3rd, Taipei time, up 0.28% from 0.6693 at 12:29, but with the end of September 2 The disk (0.6715) is still depreciated compared to the disk. The Australian dollar against the US dollar opened at the lowest level on the 3rd to 0.6685, the lowest since the August 7th.

RBA president Philip Lowe (pictured) said in a recent monetary policy press release on Tuesday that Australia’s economic growth in the first half of this year (2019) has been worse than previously expected, and household spending has been dragged down by sluggish income growth and falling house prices. . Even if household disposable income increases and the housing market is stable, it is expected to support spending, but the biggest uncertainty in Australia is still the consumption outlook.

Luo Wei said that salary growth is still low. At present, there is no pressure for salary increase. The market demand for labor is strong, but the supply of manpower is more. For the above reasons, it can be reasonably expected that the interest rate will remain low for a long time, so as to reduce the unemployment rate and ensure inflation.

Luo Wei pointed out that RBA will continue to monitor market conditions (including the job market) and will further relax monetary policy when necessary to support sustainable economic growth and achieve inflation targets after a period of time.

According to Business Insider and the Financial Times, according to the survey, 90% of economists had expected that the RBA would not move on September 3. However, nearly two-thirds of the economists surveyed believe that the RBA will cut the official cash rate by one yard (25 basis points) at the October monetary policy meeting.

The RBA previously cut interest rates by 50 basis points in June and July, and in August it did not move.

 

Reviewer overview

The Australian Dollar Shrinks - /10

Summary

The Reserve Bank of Australia (RBA) decided on Tuesday (September 3) to keep the official cash rate (OCR) at a historical low.

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