RBA cuts cash rate 25bps to a record low 0.75%
- Published on
- 01 Oct 2019, 06:56 AM
By Sophia Rodrigues
Key points from cash rate statement:
1. Forward-looking indicators of labour demand indicate that employment growth is likely to slow from its recent fast rate.
2. Economy still has spare capacity and lower interest rates will help make inroads into that. The Board also took account of the forces leading to the trend to lower interest rates globally and the effects this trend is having on the Australian economy and inflation outcomes.
3. The Board is prepared to ease monetary policy further if needed to support sustainable growth in the economy, full employment and the achievement of the inflation target over time.
4. Interest rates are very low around the world and further monetary easing is widely expected, as central banks respond to the persistent downside risks to the global economy and subdued inflation.
5. The main domestic uncertainty continues to be the outlook for consumption, with the sustained period of only modest increases in household disposable income continuing to weigh on consumer spending