The RBA at its meeting held on Tuesday 2nd of October, decided to lower the cash rate by 25 basis points to 3.25 per cent, effective 3 October 2012.
In Australia, most indicators available for this meeting suggest that growth has been running close to trend, led by very large increases in capital spending in the resources sector.
Labour market data have shown moderate employment growth and the rate of unemployment has thus far remained low. The Bank’s assessment, though, is that the labour market has generally softened somewhat in recent months.
Interest rates for borrowers have for some months been a little below their medium-term averages. However, credit growth has softened of late and the exchange rate has remained higher than might have been expected, given the observed decline in export prices and the weaker global outlook.