On the 4th of October 2016, the Reserve Bank of Australia (RBA) board will meet to discuss domestic and global economic conditions and release its monetary policy statement, having decided upon the appropriate level of the cash rate.
This business report requires you to put yourself in the position of an RBA board member and to write a maximum 1500-word report with your recommendation to the board about the appropriate level of the cash rate. Your report should contain an explicit recommendation to either increase, decrease or sustain the prevailing cash rate. Your recommendation for an increase or decrease should indicate by how many basis points the cash rate should be changed.Importantly, you will need to provide three major discussion points supporting you recommendation to increase, decrease or maintain the cash rate. These reasons should take into account domestic and global economic conditions that have determined your recommendation regarding the cash rate.
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Get Help Now!PLEASE NOTE: your three main discussion points should NOT be the three objectives of RBA’s monetary policy. Rather, your discussion should focus on what you have considered to be the three most important factors in deciding what the level of the cash rate should be to achieve these objectives.
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