RBA cuts the overnight cash rate by 25bps – first rate cut since April 2009
As we predicted the Reserve Bank Board decided to lower the cash rate by 25bps to 4.5%…..
Undoubtedly the most important development in the Governor’s statement is his observation that “inflation is likely to be consistent with the 2-3 per cent target in 2012 and 2013.” …… The fact that there is now confidence that inflation will remain within the target band for an extended period allows the Bank to deal with the prospects of an economy which is only showing moderate growth.
via Bill Evans, Westpac Chief Economist