It’s budget day in the national capital. The government says tonight is approximately jobs and growth and living within our means. Labor says the budget has to be fair. Join us for all the developments 5.45am BSTThe Aussie dollar is the most instant casualty of this decision,which will leave a few traders out of pocket nowadays.
It has plunged more than US1c in the wake of the decision but the current weakness of the US dollar might continue to support the local unit. Possibly. 5.40am BSTThat’s a surprise. Heres the top line from the statement, which you can read in full here::At its meeting nowadays, and the Board decided to lower the cash rate by 25 basis points to 1.75%,effective 4 May 2016. This follows information showing inflationary pressures are lower than expected.
In reaching nowadays’s decision, the Board took careful note of developments in the housing market, or where indications are that the effects of supervisory measures are strengthening lending standards and that price pressures have tended to abate. At present,the potential risks of lower interest rates in this area are less than they were a year ago.
Taking all these considerations into account, the Board judged that prospects for sustainable growth in the economy, and with inflation returning to target over time,would be improved by easing monetary policy at this meeting.
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Source: theguardian.com