The Reserve Bank has announced its cash rate decision at its monthly meeting.
True to economists' expectations, the
RBA has again left the cash rate untouched.
All 25 of the economists and industry experts surveyed in the finder.com.au monthly Reserve Bank survey expected no changes to the cash rate. Twenty-four of those surveyed predicted a rate rise next year, while one economist forecast the cash rate might see a rise by the end of this year, or just after.
The RBA fulfilled economists' predictions, with Governor Glenn Stevens saying the bank chose to leave rates on hold because of the high Australian dollar and increasing unemployment.
"Monetary policy remains accommodative. Interest rates are very low and have continued to edge lower over recent months as competition to lend has increased. Investors 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. The increase in dwelling prices continues. The exchange rate, on the other hand, remains above most estimates of its fundamental value, particularly given the declines in key commodity prices. It is offering less assistance than would normally be expected in achieving balanced growth in the economy," Stevens said.
