JUNE RBA UPDATE NEWS
RBA keeps rates on hold
At it's meeting today, the RBA decided to keep the cash rate on hold at 2.75%.
The board noted that financial conditions remain very accomodative and with inflation consistent with their medium term target, they deemed a wait and see approach appropriate for the time being.
Some of their comments:
Information becoming available since the previous meeting is consistent with global growth running a bit below average this year, with reasonable prospects of a pick-up next year.
In Australia, growth over the past year has been a bit below trend. The outlook published by the Bank last month is for a similar performance in the near term and recent data are consistent with this.
The easing in monetary policy over the past 18 months has supported interest-sensitive areas of spending and has been reflected in portfolio shifts by savers and higher asset values. Further effects can be expected over time. The pace of borrowing has thus far remained relatively subdued, though recently there have been some signs of increased demand for finance by households.
At the end of their statement, they did leave the door open to further cuts if required with inflation currently under control.
The Board also judged that the inflation outlook, as currently assessed, may provide some scope for further easing, should that be required to support demand.