AUSTRALIA, December 06, 2016 (Bloomberg): Australia’s central bank kept interest rates unchanged as a global commodity upswing eases the impact of a weaker economy at home.
Governor Philip Lowe left the cash rate at 1.5 percent Tuesday, saying “some slowing in the year-ended growth rate is likely” while noting that higher resource export prices “are providing a boost to national income.”
The Reserve Bank of Australia has pushed an increasingly optimistic story reflecting faster growth and falling unemployment, helped by an unexpected rebound in commodity prices in response to stimulus in China. But the picture is starting to fray, with the economy predicted to have stalled or worse last quarter and labor-market hiring relying heavily on part-time employment as participation falls.
The Australian dollar was little changed after the decision, buying 74.61 U.S. cents at 3:25 p.m. in Sydney, compared with 74.53 cents before the release.