Tuesday 7th April 2009 |
Text too small? |
The RBA lowered the overnight cash rate target to the lowest in 49 years to aid a domestic economy that probably slid into its first recession since 1991. Most economists expected no change in rates and the Australian dollar climbed to 71.32 U.S. cents after the statement from 70.94 cents immediately before it was released. The New Zealand dollar fell to 81.56 Australian cents from 82.06 cents after the move, which left the two nations' benchmark rates level pegging.
"Conditions in global financial markets have continued to improve gradually, helped by progress towards a resolution of banking system difficulties in the U.S. and other major countries," Assistant Governor Malcolm Edey said in a statement. Still, "sentiment remains fragile," he said.
The central bank had judged there was scope for a "modest adjustment to the cash rate," Edey said. Monetary policy, combined with "substantial fiscal initiatives" will provide significant support to domestic demand. Meantime, inflation over the medium term "is likely to be lower than it has been over the past two years," he said.
The RBA is predicting the Australian economy will contract this year though "by less than those of its trading partners," Edey said.
Businesswire.co.nz
No comments yet
Spark New Zealand appoints new director to the Spark Board
AFT to announce full year results on May 23 2024
CRP - Korella North Takes Another Two Steps Forward
May 3rd Morning Report
ASB workers to strike as bank proposes an effective pay cut
Rising tides, sinking stocks: study explores cost of climate change
May 2nd Morning Report
AGL - Change in Senior Management
Devon Funds Morning Note - 01 May 2024
Rick Christie to step-aside as a non-executive director