Statement by RBA Governor, Ian MacFarlane

MEDIA RELEASE - Statement from the Reserve Bank of Australia, 8 May.

Monetary Policy

Following a decision taken by the Board at its meeting yesterday, the Bank will be acting in the money market this morning to increase the cash rate by 25 basis points, to 4.50 per cent.

In recent months the economic climate has changed markedly, with firmer prospects now evident both in Australia and abroad. In the United States, the downturn that commenced early last year has proven to be milder, and of shorte