RBA Leaves Cash Rate Unchanged

RBA Leaves Cash Rate Unchanged

The Reserve Bank of Australia at it’s meeting today, Tuesday 1 July 2014, has decided to leave the cash rate unchanged at 2.50% p.a.

This is now the 11th consecutive month that official rates have not moved.

The following is an excerpt from the official RBA Media Release;

“Growth in the global economy is continuing at a moderate pace, helped by firmer conditions in the advanced countries. China’s growth slowed a little earlier in the year but remains generally in line with policymakers’ objectives. Commodity prices in historical terms remain high, but some of those important to Australia have declined.

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In Australia, recent data indicate somewhat firmer growth around the turn of the year, but this resulted mainly from very strong increases in resource exports as new capacity came on stream; smaller increases in such exports are likely in coming quarters. Moderate growth has been occurring in consumer demand.

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Monetary policy remains accommodative. Interest rates are very low and for some borrowers have edged lower over recent months. Savers continue to look for higher returns in response to low rates on safe instruments. Credit growth has picked up a little, including most recently to businesses.

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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.”

Please click here to read the full media release on the RBA website.

Read the full media release on the RBA website