The Reserve bank of Australia has left interest rates on hold for the fifth consecutive month, leaving the cash rate at 3 per cent.
In a board meeting early today governor Glenn Stevens said sentiment in global financial markets continued to improve but the affects of economic weakness still abounded.
“Economic conditions in Australia have been stronger than expected. It now appears that investment may not be as weak over the year ahead as earlier expected. Higher dwelling activity and public demand will also start to provide more support to spending soon and, hence, growth is likely to firm going into 2010,” he said.
The RBA’s decision to leave the cash rate unchanged is in keeping with industry speculation.
Yesterday NAB revised its official cash rate forecast and said it expects rates to move in November this year.