Reserve Bank of Australia Cash Rate Statement
Event Date: Friday, August 7, 2020
Event Time: 01:30 CET
Updated Tuesday, August 4, 2020
The Reserve Bank of Australia sounded dovish on their rate statement in the last meeting. They were expected to cut interest rates to 1.25% in May, but they didn't, although they cut rates in June. They did so again in July and this wasn't unexpected. They sounded increasingly dovish and also commented that they will likely follow the FED with the monetary policy. The FED delivered a rate cut in July and two more in September and October. But they haled rate cuts for now, while RBA's Lowe said last week that the effect of rate cuts from the RBA are starting to have an effect in the economy, implying that they are also done with cuts for now. They turned quite dovish like all other central banks recently, due to coronavirus outbreak, but Australia has been one of the countries which has tackled the virus well, but Victoria state issued more lock-down orders, so let's see if the RBA will turn dovish this time. Please follow us for live coverage of this event by experienced market analysts.
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About Reserve Bank of Australia Cash Rate Statement
The RBA Monetary Policy Statement is a synopsis of current economic conditions prevalent in Australia. It is an assessment of economic growth, capital market performance, and serves as a release of the RBA’s adopted monetary policy.The RBA Cash Rate is the “overnight money market interest rate,” or the “prime rate” assigned to loans in Australia. It is determined by the Reserve Bank Board and released shortly after each meeting concludes. The RBA Cash rate is revisited every calendar month except for January. The primary goals of the RBA are to promote pricing stability and ensure long-term economic growth. Inflationary concerns are addressed directly in the RBA Statements, including measures taken to mitigate any negative impact upon the domestic economy. A hawkish tone toward the Australian dollar (AUD) is viewed as being bullish, while a dovish perspective is widely accepted as bearish.The RBA Monetary Policy Statements are a key market moving event for valuations of the AUD. Heightened volatility is commonplace surrounding the release, with traders and investors forming opinions on future policy moves during the commentary.