The Reserve Bank has left the cash rate unchanged, following its monthly Board meeting today.
The cash rate remains at 2%, where it has been since May 2015.
The RBA’s Governor, Glenn Stevens, noted that commodity prices have declined substantially and financial markets have been more volatile. It says the expansion of the non-mining parts of the economy strengthened in 2015 and inflation is low.
Stevens said: “Over the period ahead, new information should allow the Board to judge whether the improvement in labour market conditions is continuing and whether the recent financial turbulence portends weaker global and domestic demand. Continued low inflation would provide scope for easier policy, should that be appropriate to lend support to demand.”
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 2.0 per cent.
Recent information suggests that the global economy is continuing to grow, though at a slightly lower pace than earlier expected. While several advanced economies have recorded improved growth over the past year, conditions have become more difficult for a number of emerging market economies. China’s growth rate has continued to moderate. [Read more…]