Result of the RBA monetary policy meeting on 5 May 2015

CUT of 25bp

Cut from 2.25% to 2.0%, as expected

Headlines from the accompanying statement via Reuters :

  • RBA says sees improved trends in household demand over past 6 months
  • Says further fall in A$ seems likely and necessary
  • Sees stronger growth in employment
  • Sess inflation seen consistent with target over next 1-2 years
  • Says sees weakness in business capex as key risk
  • Says sees economy with a degree of spare capacity for some time yet
  • Says easing to reinforce recent encouraging trends in household demand
  • Says lending to housing market been steady over recent months
  • Says house prices strong in Sydney, varied elsewhere

Full text: Statement by Glenn Stevens, Governor: Monetary Policy Decision