RBA Leaves Cash Rate Unchanged Talk to us Phone us Email us Breadcrumbs UniBank About Us Member news & media 2014 RBA Leaves Cash Rate Unchanged 05 August 2014 05 August 2014 RBA Leaves Cash Rate Unchanged The Reserve Bank of Australia at it’s meeting today, Tuesday 5 August 2014, has decided to leave the cash rate unchanged at 2.50% p.a. That makes one full year since the RBA moved the official cash rate. The following is an excerpt from the official RBA Media Release; “At its meeting today, the Board decided to leave the cash rate unchanged at 2.5 per cent. Growth in the global economy is continuing at a moderate pace, helped by firmer conditions in the advanced countries. China’s growth remains generally in line with policymakers’ objectives. Commodity prices in historical terms remain high, but some of those important to Australia have declined this year. … In Australia, growth was firmer around the turn of the year, but this resulted mainly from very strong increases in resource exports as new capacity came on line; smaller increases in such exports are likely in coming quarters. Moderate growth has been occurring in consumer demand. A strong expansion in housing construction is now under way. At the same time, resources sector investment spending is starting to decline significantly. Signs of improvement in investment intentions in some other sectors are emerging, but these plans remain tentative as firms wait for more evidence of improved conditions before committing to significant expansion. Public spending is scheduled to be subdued. Overall, the Bank still expects growth to be a little below trend over the year ahead. … Looking ahead, continued accommodative monetary policy should provide support to demand and help growth to strengthen over time. Inflation is expected to be consistent with the 2–3 per cent target over the next two years. In the Board’s judgement, monetary policy is appropriately configured to foster sustainable growth in demand and inflation outcomes consistent with the target. On present indications, the most prudent course is likely to be a period of stability in interest rates.” Read the full media release on the RBA website