The Reserve Bank of Australia (RBA) has moved in line with expectations and kept Australia’s official cash rate unchanged at a record low of 2.75 per cent.
RBA Governor Glenn Stevens says easier financial conditions now in place will contribute to a strengthening of growth over time.
While maintaining the monetary policy stance is appropriate for the time being, the Board left the door open for further easing given the inflation outlook.
Explaining the decision, Governor Stevens says although the Australian dollar has depreciated since the previous Board meeting, it still remains high considering the decline in export prices that’s taken place over the past year and a half.
He says commodity prices have declined from their peaks but, overall, remain at high levels by historical standards.
The board says inflation has generally moderated over recent months and monetary policy has been eased further in a number of countries.
