This means that the uncollateralized overnight call rate, which will be effectively zero percent in accordance with the new guideline for money market operations, will basically not exceed this ceiling of 0.1 percent even if it surges temporarily. Reduction of the outstanding balance of current accounts at the Bank will be managed through short-term money market operations.
The Australian economy recorded another very strong year in 2007. Real GDP expanded by about 4 per cent. Growth in domestic final demand was even stronger, at over 5½ per cent. The rate of unemployment declined further, in the most recent readings reaching its lowest level since the mid 1970s.