Cash Rate

At its August meeting, the Board of the Reserve Bank of Australia decided to leave the cash rate unchanged at 1.00%. Bank bill swap rates are as follows:

30 day

60 day

90 day

180 day

BBSW

1.04%

1.02%

0.98%

0.99%

In response to economic indicators, the Reserve Bank Board lowered the cash rate at both its June and July meetings, to a new low of 1%. The Board judged that additional monetary stimulus would assist with faster progress in reducing unemployment and help create the conditions for more assured progress towards the inflation target. Given the current environment, it is reasonable to expect that an extended period of low rates will be needed to achieve the Board's employment and inflation objectives. The Board will continue to monitor developments in the labour market closely and is prepared to ease monetary policy further if needed to support sustainable growth in the economy and the achievement of the inflation target over time.

(Source: Reserve Bank of Australia)