The Reserve Bank of Australia has left interest rates unchanged for the fourteenth consecutive month.
The cash rate of 2.5% was set in August 2013 and has remained unchanged since then. It is the longest period of interest rate stability since 2005-06.
In a statement, the bank’s Governor, Glenn Stevens, said: “The exchange rate has declined recently, in large part reflecting the strengthening US dollar, but remains high by historical standards, particularly given the further declines in key commodity prices in recent months. It is offering less assistance than would normally be expected in achieving balanced growth in the economy. 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.”
Statement by Glenn Stevens, Governor of the Reserve Bank of Australia.
Statement by Glenn Stevens, Governor: Monetary Policy Decision
At its meeting today, the Board decided to leave the cash rate unchanged at 2.5 per cent. [Read more…]