MNI POLICY: RBA Prepared To Ease, But Room......>

RBA: MNI POLICY: RBA Prepared To Ease, But Room Running Out: SoMP

- The Reserve Bank of Australia is prepared to cut official interest rates again

to stimulate the economy, but is aware that it is running out of room before

"other policy options" must be considered. The quarterly Statement on Monetary

Policy, released today, reveals that the RBA believes that the Australian

economy has reached a gentle turning point, but any recovery will be gradual and

uneven. Given this outlook, the RBA says it is "prepared to ease monetary policy

further" if needed to support sustainable growth, with a focus on full

employment and the medium term inflation target. The Statement acknowledges that

financial markets have "priced in some chance" of a further 25 basis point cut

in official rates next year.

- For full story see MNI Main Wire at 00:49 GMT 11/08 or contact

sales@marketnews.com for access.