Moving in line with forecasts the Reserve Bank of Australia (RBA) has kept the nation’s official interest rate on hold at 3.5 per cent at its September board meeting.
It is the third straight month interest rates have been maintained at 3.5 per cent after two months of rate cuts in June and May. The current rate of 3.5 per cent sits at lowest level since November 2009.
RBA Governor Glenn Stevens says with inflation expected to be consistent, but with a more subdued international outlook than was the case a few months ago, the stance of monetary policy remains appropriate.
Governor Stevens also noted that Australia’s growth appears to have been running close to trend however global GDP is expected to grow at no more than average pace this year, with risks to the outlook still on the downside.
Many analysts have forecast rates will drop by at least 25 basis points one more time in 2012.
