RBA holds fire on rates for another month

The Reserve Bank of Australia (RBA) has kept the official cash rate at 4.5 per cent following its monthly board meeting today (August 3rd).

It marks the third consecutive month that official interest rates have been kept on hold, with last week’s better-than-expected inflation data likely to have affected the decision.

RBA governor Glenn Stevens said in a statement that current interest rates are around the average level of the past decade.

“With (economic) growth likely to be close to trend, inflation close to target and the global outlook remaining somewhat uncertain, the board judged this setting of monetary policy to be appropriate,” he commented.

In a survey of 11 economists by the AAP last week, all predicted that the RBA would keep the rate unchanged today.
All of the economists also forecast that the September quarter will be free of rate rises, though it has been predicted that the cash rate will notch up to five per cent by the very end of the year.

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