02.08.2016 - The RBA lowered the rate to 1.50%
Today the Reserve Bank of Australia decided to reduce the key interest rate by 0.25% to 1.50%, which was expected decision due to low inflation in the country that in the second quarter was only 0.4%. This step should lead to an increase in demand in the country, which is one of the drivers of the local economy, which is growing at a moderate pace despite strong decline in capital investment. The downward impact on the economic situation also have the slowing growth in China and the recent fall in oil prices. Our medium-term outlook remains negative, with targets at 0.7200 and 0.6800.