The Reserve Bank of Australia (RBA) has moved in line with expectations and keep Australia’s official cash rate unchanged at 3 per cent for the third straight meeting in 2013.
Explaining the decision RBA Governor Glenn Stevens says the downside risks to global growth appear to be reduced despite global growth forecasts a little below average for a time.
While conceding commodity prices have declined somewhat recently Governor Stevens points out prices still remain at historically high levels.
As the peak in resource investment draws nearer the RBA believes there will be more scope for some other areas of demand to strengthen.
Today’s decision comes after the Central Bank kept the cash rate steady in February and March, having cut 1.75 percentage points since November 2011.
Governor Stevens says this substantial easing of monetary policy is already having an expansionary effect on the economy and further such effects can be expected to emerge over time.
