RBA Interest Rate Announcement May 2015

The RBA today has decided to cut interest rates by 0.25% today. It was a relatively short release from the RBA today.

Here is the summary of what the RBA said:

  1. The global economy is moving at a moderate pace. Same as last month.
  2. Other major central banks are increasing the pace of unconventional policy measures (aka quantitative easing).
  3. Australian business spending (capex) and government spending (budget) is likely to be subdued.
  4. Inflation is in target range. Same as last month.
  5. Household lending is only increasing moderately. Same as last month.
  6. RBA sees risks in the Sydney property market.
  7. Australian dollar is still high and likely to devalue given lower commodity prices.

More details at http://www.rba.gov.au/media-releases/2015/mr-15-08.html

Disclaimer: This shouldn’t be considered investment advice and is only a general comment that doesn’t take in to account your specific circumstances.