Intension in the financial markets has affected the economies of all countries without exception. In the fight against the “world entropy”, Australia’s main regulator decided to protect the national economy from external risks. The strategy has resulted in the third consecutive reduction of the key rate to a historic low of 0.75% per annum.
Philip Lowe, current Governor of the Reserve Bank of Australia, explained that the primary goal of cutting the rate was to reduce unemployment to the target level of 4.5%. At the moment, the number of the unemployed Australians is 5 %. He also said that his agency was ready to further soften policies in order to counter the global slowdown of the economic growth.
Experts believe that the Australian economy has free capacity, which will be stimulated by the reduced rate. This, in turn, will create new jobs.
By the way, the Australian dollar continues to smoothly decline. According to the results of the third quarter, the drop has amounted to 3.8%.
The material was prepared with the participation of Katya Wilson,
a leading analyst of the brokerage company UFT Group