The Reserve Bank (RBA) board met earlier this week and at their meeting decided to make no change to official interest rates. As a result, the cash rate remained on hold at 2.5%.
It was the seventh consecutive month where the cash rate held firm. The statement following decision noted that: “In the Board’s judgement, monetary policy is appropriately configured to foster sustainable growth in demand and inflation outcomes consistent with the target.
On present indications, the most prudent course is likely to be a period of stability in interest rates.” From the statement we can gather that the RBA is intending to keep the cash rate on hold for the foreseeable future.