The Stance of Monetary Policy in Australia (HSC SSCE Economics): Flashcards
📚Flashcards
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Practise the cards
10 cards from this deck
Time RBA announces cash rate decision
Time RBA announces cash rate decision
2:30pm
Monetary Policy Board meetings per year (from 2024)
Monetary Policy Board meetings per year (from 2024)
Eight times
Contractionary monetary policy purpose
Contractionary monetary policy purpose
Higher interest rates to reduce inflation
Expansionary monetary policy purpose
Expansionary monetary policy purpose
Lower interest rates to stimulate growth
Time lag for monetary policy to affect inflation
Time lag for monetary policy to affect inflation
12 to 18 months
RBA's inflation target range
RBA's inflation target range
2-3%
Cash rate during COVID-19 pandemic (historic low)
Cash rate during COVID-19 pandemic (historic low)
0.10%
Number of rate increases May 2022 to July 2023
Number of rate increases May 2022 to July 2023
12 interest rate increases
Cash rate during Global Financial Crisis
Cash rate during Global Financial Crisis
3% (50-year low at the time)
RBA's dual mandate
RBA's dual mandate
Price stability and full employment