RBA maintains run of record low rates
The Reserve Bank of Australia has kept official interest rates on hold at record lows as investors await the official update of Australia’s economic growth rate and remarks from RBA governor Glenn Stevens at lunchtime tomorrow.
For the 13th month in a row the RBA has kept the official cash rate at a historic low of 2.5 per cent — one of the longest periods of stable rates.
The RBA has repeatedly stressed the likelihood of “a period” of low and stable interest rates since it met February this year.
Governor Stevens said in a statement after the September board meeting that low interest rates were helping support economic growth.
The RBA again said the Australian dollar was high by historical standards, particularly given the declines in commodity prices. “And hence is offering less assistance than it might in achieving balanced growth in the economy,” Mr Stevens said.
National Australia Bank senior economist Spiros Papadopoulos said it looked like the RBA was happy to keep the cash rate unchanged given mixed signals in the economy.
Mr Papadopoulos expects the RBA to leave its interest rate unchanged for at least the next 12 months.
Source: theaustralian
