FEBRUARY RBA UPDATE
RBA Leaves rates on hold.
At its meeting today, the Board decided to leave the cash rate unchanged at 3.0 per cent.
The bank commented that globally conditions appear to be improving and domestically with inflation under control they have room to ease monetary policy in the future should conditions deteriorate.
Some of their comments were:
In Australia, most indicators available for this meeting suggest that growth was close to trend in 2012, led by very large increases in capital spending in the resources sector, while some other sectors experienced weaker conditions. Looking ahead, the peak in resource investment is approaching. As it does, there will be more scope for some other areas of demand to strengthen.
Inflation is consistent with the medium-term target, with both headline CPI and underlying measures at around 2¼ per cent on the latest reading. Looking ahead, with the labour market softening somewhat and unemployment edging higher, conditions are working to contain pressure on labour costs.
The Board's view is that with inflation likely to be consistent with the target, and with growth likely to be a little below trend over the coming year, an accommodative stance of monetary policy is appropriate. The inflation outlook, as assessed at present, would afford scope to ease policy further, should that be necessary to support demand.
As expected a wait and see approach!
As always, feel free to contact the office on 07 3376 1005 if you would like more information or to discuss your own situation.