Interest Rate News

August 7, 2013/News

At its meeting yesterday, the Board decided to lower the cash rate  by 25 basis points to 2.5 per cent, effective 7 August 2013.

In Australia, the economy has been growing a  bit below trend over the past year. This is expected to continue in the near  term as the economy adjusts to lower levels of mining investment. The  unemployment rate has edged higher. Recent data confirm that inflation has been  consistent with the medium-term target. With growth in labour costs moderating,  this is expected to remain the case over the next one to two years, even with the  effects of the recent depreciation of the exchange rate.