Australia backs up unexpected rate cut with clear communications

The Reserve Bank of Australia, whose official "duty is to contribute to the stability of the currency, full employment, and the economic prosperity and welfare of the Australian people", made a blunt statement justifying its largely unexpected decision to cut interest rates to a record low.

RBA Governor Glenn Stevens, in a statement on the monetary policy decision:

This follows information showing inflationary pressures are lower than expected ... Inflation has been quite low for some time and recent data were unexpectedly low ... the Board judged that prospects for sustainable growth in the economy, with inflation returning to target over time, would be improved by easing monetary policy at this meeting.

A good example of clear communications: Summing up a policy view in a few words without resorting to reciting statistics.