The Reserve Bank of Australia (RBA) in its July monetary policy meeting declared that they would cut interest rates again “if needed”, to support employment, growth and inflation.
RBA Governor Philip Low has called for more financial stimulus.
Board deciding that cutting rates by 25% would help economy, they would continue to monitor labour market closely, to support growth in the economy and wages.
RBA have to low rates to prevent an unwelcome rise in A$. Despite two interest rate cuts till now, the Aussie has risen through o.69 to current level o.71.
There are signs of stabilization in Sydney and Melbourne housing markets.
Some economic data as consumer confidence, housing and consumer price index are top cases in central bank survey.
One of the economist from Bank of Canada forecasts the cash rate of 0.5% by 2020.