Reserve Bank Leaves Cash Rate on Hold

Posted on February 10th, 2014 · Posted in News

Following its February meeting, the first of the year, the Reserve Bank has left interest rates unchanged at 2.5%. The decision was widely expected by economists. Rates have been on hold at a record low of 2.5% since August last year.

“On present indications, the most prudent course is likely to be a period of stability in interest rates,” RBA governor Glenn Stevens said in a statement accompanying the decision. “In the Board’s judgment, monetary policy is appropriately configured to foster sustainable growth in demand and inflation outcomes consistent with the target.”

In the latter half of 2013 Mr Stevens on several occasions said the Australian dollar was uncomfortably high. However, in recent weeks the Australian dollar has stayed below 90 US cents, which seemed to please the RBA governor. “The exchange rate has declined further, which, if sustained, will assist in achieving balanced growth in the economy,” Mr Stevens said.

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