The Reserve Bank of Australia (RBA) has once again kept the official cash rate on hold at 2 per cent.
It’s the 11 month in a row the RBA has kept rates on hold, after it made two rate cuts already in February and again in May 2015.
Explaining today’s decision the central bank noted the global economy is continuing to grow, but a slightly slower pace than earlier expected.
While key commodity prices have generally increased a little recently, this follows very substantial declines over the past couple of years.
The RBA also acknowledged that at present inflation is quite low in Australia is likely to remain low over the next year or two.
It says continued low inflation would provide scope for easier policy, should that be appropriate to lend support to demand.
But for now the RBA says the current cash rate is appropriate and it will assess conditions in the period ahead before making any changes.
The Aussie dollar was quick to react with an small surge higher against the greenback, pushing above $US0.76.
