RBA minutes suggest a wait-and-see approach

The minutes from the latest Reserve Bank of Australia (RBA) monetary policy meeting suggest that the board has adopted a cautious approach to changing the rates.

Currently at 4.75 per cent, the cash rate has not been changed by the central bank since November 2010.

The latest minutes explained that there was little hard data to look at to assess the impact of global and domestic developments on the Australian economy and inflation levels.

"As further information became available on the domestic and international economies, members would continue to assess the medium-term outlook for inflation and growth," they stated.

However, it suggested that the current monetary policy setting by the board appears to leave the bank "well-placed to respond to evolving global and domestic economic conditions".

Last week, analysis published by the International Monetary Fund suggested that the RBA was right to hold rates, saying that an "accommodative" stance may be appropriate in economies where "the central bank's credibility is strong".

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