Business report Essay Example | Topics and Well Written Essays - 1500 words - 1

Business report - Essay Example The cash rate or the interest rate of monetary policy has been stable for the past financial year and half, and the board had already taken some time to evaluate the implication of substantially reducing the rate of interest on the monetary policy. Finally, the Reserve Bank of Australia has done a crucial job in controlling the lending rate by reducing the cost of borrowing. Also. Since the Australian dollar was week against the U.S dollar, the reserve bank operated with favorable monetary policies to prevent the collapse of the Australian Economy. Therefore, the economy is stable and there is a predictable growth in the first half of 2015. The growth will boost investment, the rate of return to commercial banks and employment. One of the most important elements in the performance of any economy is the amount of workforce or the employment status of the population. High level of employment results in a high output of the economy and consequently a high level of development. However, the level of employment is not the only determinant of economic growth, especially when it comes to global markets. The prices of oil have proved to a significant determinant of macroeconomics and research has already pointed out that the increase in the prices of oil is hazardous to global markets. The prices of commodities have been observed to decline and the price of oil has significantly fallen over the last couple of months; which has resulted to a lower level of demand as a result of high level of supply. Interestingly, since oil is arguably the core driver of any economy, lower price of the energy is tipped to strengthen the global output and the rates of inflations are temporarily expected to fall. This study will look to explain the current economic situation in Australia and making a forecast for the rates of cash of the Central Banks, keeping in mind the drop in the prices of the oil in the global market. With the cost of oil falling in the