Importantly, we can ensure that inflation remains low and stable so that uncertainty about the overall level of prices is not added to the list of things that the community has to worry about. Since November 2011, the Board of the Reserve Bank has lowered the cash rate six times, by a cumulative 1¾ percentage points.
These reductions have brought the cash rate down to 3 per cent, which is equal to the lowest level on record. Lending rates have also come down substantially, although a number are still above earlier lows given the general rise in bank funding costs that has occurred since the global financial crisis.