Cash Rate

At its October meeting, the Board of the Reserve Bank of Australia decided to lower the cash rate by 25 basis points to a record low of 0.75%. Bank bill swap rates are as follows:

30 day

60 day

90 day

180 day

BBSW

0.90%

0.89%

0.89%

1.00%

The RBA Board took the decision to lower interest rates further to support employment and income growth and to provide greater confidence that inflation will be consistent with the medium-term target. The economy still has spare capacity and lower interest rates will help make inroads into that. The Board also took account of the forces leading to the trend to lower interest rates globally and the effects this trend is having on the Australian economy and inflation outcomes.

It is reasonable to expect that an extended period of low interest rates will be required in Australia to reach full employment and achieve the inflation target. The Board will continue to monitor developments, including in the labour market, and is prepared to ease monetary policy further if needed to support sustainable growth in the economy, full employment and the achievement of the inflation target over time.

 (Source: Reserve Bank of Australia)