- Reserve Bank of Australia
The Reserve Bank of Australia believed that ultra-low interest rates helped to underpin consumption and support the nation's economy as China's outlook remains the biggest concern, the minutes of the last board meeting showed. The central bank expected the Australian economy to strengthen gradually, while the slowdown in Asia, particularly in China, remained one of the key uncertainties and appeared to be more persistent than estimated earlier, contributing to lower commodity prices. Australia policy makers kept interest rates on hold at 2% for the past six months as the job market steadily improved and the Australian Dollar weakened, reinforcing the competitiveness of local companies.
The economy is set for its best year of jobs growth since 2010 after creating 58,600 jobs in October, when unemployment slid to 5.9%, while consumer confidence surged in the past two months. Expectations the RBA will further lower its official cash rate moderated, due to strong US jobs showing, with traders pricing in a 26% chance of a rate cut by February. The RBA, in its quarterly Statement on Monetary Policy released November 6, forecast growth would accelerate to 3% in 2016 from 2.25% this year.
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