The Stance of Monetary Policy in Australia (HSC SSCE Economics): Quizzes
📚Quizzes
Practise the questions
10 questions from this quiz
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Practise the questions
10 questions from this quiz
At what time does the RBA announce its cash rate decision following each Board meeting?
At what time does the RBA announce its cash rate decision following each Board meeting?
2:30pm
What describes a contractionary monetary policy stance?
What describes a contractionary monetary policy stance?
Higher rates to reduce inflation
How long does it take for cash rate changes to fully affect inflation?
How long does it take for cash rate changes to fully affect inflation?
12-18 months
What historic low did the cash rate reach during the COVID-19 pandemic in 2020?
What historic low did the cash rate reach during the COVID-19 pandemic in 2020?
0.10%
How many interest rate increases did the RBA implement between May 2022 and July 2023?
How many interest rate increases did the RBA implement between May 2022 and July 2023?
12
What is the RBA's inflation target range over the medium term?
What is the RBA's inflation target range over the medium term?
2-3%
Which index does the RBA monitor to track changes in wage rates?
Which index does the RBA monitor to track changes in wage rates?
Wage Price Index
What operations does the RBA use to move the actual cash rate to match the target?
What operations does the RBA use to move the actual cash rate to match the target?
Domestic Market Operations
What cash rate level did the RBA reduce to during the Global Financial Crisis?
What cash rate level did the RBA reduce to during the Global Financial Crisis?
3%
What happens when wage growth exceeds productivity gains?
What happens when wage growth exceeds productivity gains?
Unit labour costs rise