RBA saw no effect from June, July cuts

The Reserve Bank’s decision to cut the cash rate to a fresh record low 0.75 per cent this month came after board members failed to see any stimulatory effects from its two previous reductions or government tax cuts.

Minutes from the RBA’s monthly meeting on October 1 showed board members noted weakening growth in the US, slowing economic activity in China, and continued concerns about the drag on the local economy from sluggish consumer spending.

“Members noted that there had not yet been evidence of a pick-up in household spending following the recent reductions in the cash rate and receipt of the tax offset payments, although they acknowledged that it may be too early to expect any signs of a pick-up,” read the minutes released on Tuesday.

AAP

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