Today the Reserve Bank of Australia has made public its meeting minutes for May 01.
At this meeting the bank marked down its interest rate abruptly by 50 basis points - from 4.25% to 3.75%.
The provided information shows that Australia has overcome the inflationary pressure. The consumer price hike has stalled within the target bank range of 2-3%.
Now the bank has switched to the policy of supporting the Australian ecoonmy. The current economic growth of the country is much below the predicted levels.
Economic activity in the country is quite divergent. For instance, the mining sector has been dominating currently, while tourism and export-oriented companies have been on the downside.
The main reason for downtrend was the overrated national currency which has provoked the trade balance to show deficit for the first time for 11 months. Nevertheless, on Monday the Aussie had decelerated to a half-year low versus the US dollar.
Among other issues, there are still some risks related to the global economy prospects and the Eurozone situation in particular, which can prompt the Bank of Australia for another rate cutting already at the next meeting.