The Reserve Bank’s cash rate remains unchanged at 2%, following today’s meeting of the bank’s board.
The rate was last changed in May 2015, when it was cut by 0.25% to 2%.
In a statement on behalf of the Board, the bank’s Governor, Glenn Stevens, noted that “other major central banks are continuing to ease policy”. He said: “In Australian, the available information suggest that moderate expansion in the economy continues.”
“Low interest rates are acting to support borrowing and spending,” Stevens said.
Statement from Glenn Stevens, Governor of the Reserve Bank of Australia.
At its meeting today, the Board decided to leave the cash rate unchanged at 2.0 per cent.
The global economy is expanding at a moderate pace, with some further softening in conditions in China and east Asia of late, but stronger US growth. Key commodity prices are much lower than a year ago, in part reflecting increased supply, including from Australia. Australia’s terms of trade are falling. [Read more…]