Reserve Bank of Australia

The most widely-watched consumer sentiment survey has jumped 6.4 per cent in May following an interest rate cut and the federal budget.  The Westpac-Melbourne Institute index hit 102.4, which indicates that optimists narrowly outnumber pessimists – it is the first positive reading since February.  Consumer sentiment is now running around long run averages. The findings […]

Australia’s central bank indicated it still has scope to ease policy if needed after cutting interest rates two weeks ago, saying slower growth would result in elevated unemployment for longer. The rate reduction reflected signs spending by firms in the resource industry and outside it “would be weaker than expected,” the Reserve Bank of Australia

The Reserve Bank is treading a fine line between stimulating the economy without causing potentially damaging imbalances, a senior central bank official says.  RBA deputy governor Philip Lowe said low interest rates were helping to wean Australia off dependence on the mining investment boom by supporting spending.  In time, consumer spending growth and a further