Arab Today, arab today australias central bank keeps interest rates on hold
Last Updated : GMT 16:38:17
Arab Today, arab today
Arab Today, arab today

Australia's central bank keeps interest rates on hold

Arab Today, arab today

Arab Today, arab today Australia's central bank keeps interest rates on hold

The Reserve Bank of Australia has been loosening monetary policy
Sydney - AFP

Australia on Tuesday kept interest rates at 2.0 percent after slashing them to a record low last month, and called for a weaker currency to help counter a sluggish economy struggling with soft business spending.

The Reserve Bank of Australia has been loosening monetary policy as the country exits an unprecedented China-driven mining investment boom and non-resources industries strain to fill the gap.

Despite not cutting rates further, it signalled a mild easing bias after its monthly meeting.

"Having eased monetary policy last month, the board today judged that leaving the cash rate unchanged was appropriate at this meeting," Reserve Bank of Australia governor Glenn Stevens said in a statement.

"Information on economic and financial conditions to be received over the period ahead will inform the board's assessment of the outlook and hence whether the current stance of policy will most effectively foster sustainable growth and inflation consistent with the target."

The Australian dollar traded half a US cent higher at 76.74 US cents after the decision as financial markets had expected a clearer easing bias.

The RBA's decision was widely expected by analysts, who said the central bank would sit on the sidelines as it waits to see if its two 25 basis point cuts this year -- one in February and another in May -- lift economic growth.

"I think they're still prepared to cut rates but I think they didn't want to go so far to signal a near-term move," Barclays' chief economist for Australia Kieran Davies told AFP.

"The housing market is giving them pause for thought."

- Low rates boosts housing market -

Stevens noted that house prices continued to increase strongly in Sydney, although growth trends were more varied in other cities.
Economists have said lower interest rates could overheat the already booming residential property sectors in the two biggest cities Sydney and Melbourne.

Stevens warned that business spending remained soft and was a "key drag" on private demand. Weak capital expenditure data last week showed non-mining firms were still reluctant to spend.

"Weakness in business capital expenditure... is likely to persist over the coming year. Public spending is also scheduled to be subdued," the governor said.

"Overall, the economy is likely to be operating with a degree of spare capacity for some time yet."

The central bank maintained its call for a weaker exchange rate, saying "further depreciation seems both likely and necessary, particularly given the significant declines in key commodity prices".

Weakening commodity prices, particularly Australia's largest export iron ore, have hurt the economy and squeezed government revenue.

The RBA meeting came ahead of an official reading of economic growth in the first three months of this year, due Wednesday.

The data is forecast to show that GDP expanded by 0.5 percent in the first-quarter to take annual growth to a below-trend 1.9 percent.

Economists said further weak data could see another rate cut this year.

"While the RBA emphasised the need for monetary policy to be accommodative, it remains mindful of the limitations of monetary policy, while also cognisant of the risks of an overheating housing market," ANZ bank's co-head of Australian economics Felicity Emmett said.

"These two factors suggest that the bar for further rate cuts remains high."

arabstoday
arabstoday

GMT 21:04 2017 Monday ,18 September

Dollar exchange rate stable at major banks

GMT 19:07 2017 Monday ,18 September

Inflation slump to hit in early 2018: ECB

GMT 20:35 2017 Sunday ,17 September

Dollar exchange rate stable at major banks

GMT 05:53 2017 Saturday ,16 September

ECB fines rescued Italian bank 11.2 mln euros

GMT 11:43 2017 Tuesday ,12 September

US sues ex-Deutsche Bank exec for securities fraud

GMT 12:03 2017 Sunday ,10 September

Bahrain introduces mandatory IESCA
Arab Today, arab today
Arab Today, arab today

Name *

E-mail *

Comment Title*

Comment *

: Characters Left

Mandatory *

Terms of use

Publishing Terms: Not to offend the author, or to persons or sanctities or attacking religions or divine self. And stay away from sectarian and racial incitement and insults.

I agree with the Terms of Use

Security Code*

Arab Today, arab today australias central bank keeps interest rates on hold Arab Today, arab today australias central bank keeps interest rates on hold

 



Name *

E-mail *

Comment Title*

Comment *

: Characters Left

Mandatory *

Terms of use

Publishing Terms: Not to offend the author, or to persons or sanctities or attacking religions or divine self. And stay away from sectarian and racial incitement and insults.

I agree with the Terms of Use

Security Code*

Arab Today, arab today australias central bank keeps interest rates on hold Arab Today, arab today australias central bank keeps interest rates on hold

 



Arab Today, arab today
Arab Today, arab today Youssra depended on colored foam

GMT 16:53 2017 Tuesday ,05 September

Youssra depended on colored foam
Arab Today, arab today A no-frills business success

GMT 07:00 2017 Wednesday ,20 September

A no-frills business success
Arab Today, arab today Etiquette expert underlines importance of gifts

GMT 17:52 2017 Sunday ,03 September

Etiquette expert underlines importance of gifts
Arab Today, arab today Israel sees benefits in independent Kurdistan

GMT 07:58 2017 Wednesday ,20 September

Israel sees benefits in independent Kurdistan
Arab Today, arab today Saudi Arabia to unblock internet calling apps

GMT 11:31 2017 Wednesday ,20 September

Saudi Arabia to unblock internet calling apps
Arab Today, arab today
Arab Today, arab today
Arab Today, arab today Ministry seeks to improve education

GMT 14:49 2017 Sunday ,17 September

Ministry seeks to improve education
Arab Today, arab today New Zealand opposition looks

GMT 10:35 2017 Thursday ,14 September

New Zealand opposition looks
Arab Today, arab today Puerto Rico, Virgin Islands brace

GMT 12:01 2017 Wednesday ,20 September

Puerto Rico, Virgin Islands brace
Arab Today, arab today The history of solar eclipses

GMT 05:16 2017 Sunday ,20 August

The history of solar eclipses
Arab Today, arab today Intel chips loaded in Waymo

GMT 14:43 2017 Wednesday ,20 September

Intel chips loaded in Waymo
Arab Today, arab today Five trends at the Frankfurt auto show

GMT 12:04 2017 Monday ,18 September

Five trends at the Frankfurt auto show
Arab Today, arab today Horia Farghaly happy for success of “Case G”

GMT 12:14 2017 Monday ,18 September

Horia Farghaly happy for success of “Case G”
Arab Today, arab today France hopeful of persuading Trump

GMT 06:21 2017 Wednesday ,20 September

France hopeful of persuading Trump

GMT 06:31 2017 Saturday ,16 September

Eman Al Assy receives three offers

GMT 05:05 2017 Tuesday ,12 September

Pregnant woman's suicide roils China

GMT 16:53 2017 Saturday ,02 September

Mai importance of gifts during Eid Al-Adha

GMT 19:18 2017 Monday ,18 September

5,000 'Dieselgate' deaths in Europe per year

GMT 10:46 2017 Saturday ,05 August

Nanis reveals simple ideas for home renovation

GMT 04:26 2017 Wednesday ,20 September

Opioid overdose deaths take 2.5 months

GMT 11:40 2017 Monday ,18 September

Russia and Iraq restore air travel

GMT 17:12 2017 Monday ,07 August

Al-Shawaifi reveals secrets of total solar eclipse

GMT 12:56 2017 Friday ,15 September

Apple's grand plan in Ireland held up by a forest

GMT 11:37 2017 Saturday ,12 August

Fashion designer reveals her new collection
Arab Today, arab today
Arab Today, arab today
 
 Arab Today Facebook,arab today facebook  Arab Today Twitter,arab today twitter Arab Today Rss,arab today rss  Arab Today Youtube,arab today youtube  Arab Today Youtube,arab today youtube
arabstoday arabstoday arabstoday arabstoday
arabstoday arabstoday arabstoday
arabstoday
بناية النخيل - رأس النبع _ خلف السفارة الفرنسية _بيروت - لبنان
arabstoday, Arabstoday, Arabstoday