The RBA has cut the Official Cash Rate to 4.50percent
01 November 2011
• RBA says neutral stance now consistent
• Fears of a major downturn have not been borne out
• China’s growth has slowed
• Inflation now likely to be close to target
• Overall growth moderate, confidence subdued
• Significant slowing in European economic activity
• Financial market conditions had been tighter than normal
• Commodity prices have generally declined over recent months
• Less risk of wage costs rising
• Sometime yet before concerns about Europe can definitely be laid to rest
• Inflation likely to be consistent with target in 2012 & 2013
• Recent market turmoil on confidence may result in period of household caution