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Staff Reporter
The Reserve Bank (RBA) has decided to leave the cash rate unchanged at 4.75 per cent.
At its meeting, the Board judged it was prudent to maintain its stance on monetary policy.
While the Board admitted conditions in global financial markets have been very unsettled over recent weeks, it could not find enough evidence to support a rate change.
“At this stage, little evidence is available to gauge any effects of the European and US problems on other regions,” RBA governor Glenn Stevens said.
The announcement comes as no surprise to the many economists who have maintained interest rates would remain steady until the end of the year.
APM senior economist Andrew Wilson told Real Estate Business last week that until the future of foreign markets becomes more certain, the RBA would remain conservative about its movements.
“With the mixed messages that we are seeing at the moment – and certainly that adjustment process that certain sectors of the economy are facing – coupled with the mixed speed of economic activity and the uncertainty with international equities markets, there will certainly not be any movements up or down in the shorter term,” Mr Wilson said.
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