RBA Rate Cuts Rates Again in Response to Weaker Economic Conditions
The Chamber of Commerce and Industry Queensland (CCIQ) has welcomed the Reserve Bank of Australia’s (RBA) decision to lower the official cash rate to 1.00% recognising the challenges in the domestic economy.
The decision was expected by economists and financial markets with the March annual weighted median inflation rate at 1.2% and the trimmed mean measure 1.6%, both sitting well below the Reserve Bank’s core inflation rate target of 2–3 per cent, on average over time.
CCIQ Head of Industry, Dan Petrie said that today’s announcement comes amidst a period of slowing activity across the broader economy.
“Today’s decision to lower the official benchmark is the central bank pulling a monetary policy lever that will need to be supported by government policy as well.
“The proposed income tax legislature proposed for debate in the federal parliament should be a net positive for consumption to stimulate spending in the national economy.
“The Australian economy needs aggressive monetary and fiscal policy settings working together so as to provide the base for greater levels of business activity.” Mr Petrie said.