Reserve Bank of Australia September monetary policy board meeting
No change in the official cash rate target, remains at 2%
Headlines from Governor Stevens' accompanying Statement coming up:
- RBA says leaving rates unchanged appropriate
- Says AUD adjusting to lower commodity prices
- Monetary policy needs to be accommodative
- Says low interest rates acting to support borrowing and spending
- Available data suggest Australian economy has continued to grow
- Inflation forecast to remain consistent with target over next 1-2 yrs
Quick headlines via Reuters
Full text here: Statement by Glenn Stevens, Governor: Monetary Policy Decision
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Some other items of interest from the accompanying statement (bolding is mine, not Glenn's):
- The global economy is expanding at a moderate pace
- Some further softening in conditions in China and east Asia of late, but stronger US growth
- The Federal Reserve is expected to start increasing its policy rate over the period ahead, but some other major central banks are continuing to ease policy
- Equity markets have been considerably more volatile of late, associated with developments in China, though other financial markets have been relatively stable
- Overall, global financial conditions remain very accommodative
- Overall, the (Australian) economy is likely to be operating with a degree of spare capacity for some time yet
- Domestic inflationary pressures contained
- Dwelling prices continue to rise strongly in Sydney, though trends have been more varied in a number of other cities. The Bank is working with other regulators to assess and contain risks that may arise from the housing market
And, finally:
The Board today judged that leaving the cash rate unchanged was appropriate at this meeting. Further information on economic and financial conditions to be received over the period ahead will inform the Board's ongoing assessment of the outlook and hence whether the current stance of policy will most effectively foster sustainable growth and inflation consistent with the target.