RBA leaves rate unchanged
The Reserve Bank of Australia has again left interest rates on hold at a record low of 2.5%.
The official interest rate has remained unchanged for the past 13 meetings – the longest time since 2003.
Announcing the decision, RBA governor Glenn Stevens hinted that rates would continue to stay on hold in the near future.
“On present indications, the most prudent course is likely to be a period of stability in interest rates,” Mr Stevens said.
He said current data was showing that the Australian economy was experiencing moderate growth, noting that while spending in the resources sector was significantly declining, other sectors were expanding, albeit at varying rates.
Mr Stevens noted that the RBA expected growth in the Australian economy “a little below trend for the next several quarters”.
He also noted that interest rates offered by commercial banks had continued to edge lower in recent months as competition heats up.
“Credit growth is moderate overall, but with a further pick-up in recent months in lending to investors in housing assets,” Mr Stevens said.