RBA announces its latest monetary policy decision – 2 July 2019

• Prior 1.25%
• Says rate cut will help to make inroads into spare capacity
• Says rate cut will help achieve progress towards inflation target
• Says rate cut is to support jobs, bring inflation back in-line with target
• Says rate cut will help quicken reduction in unemployment
• Notes that inflation pressures are subdued across the economy
• Sees underlying inflation at 2% in 2020
• But expects inflation to pick up, boosted by petrol prices in Q2
• To adjust policy if needed to support growth, inflation
• Central scenario for Australian economy remains reasonable
• Tentative signs of house prices stabilising in Sydney, Melbourne
• AUD at the lower end of narrow range