RBA’s First New Year’s Resolution
Interest Rates on Hold - Monetary Policy Decision - July 2015
At its meeting today,
the Reserve Bank Board decided to leave the cash rate unchanged at 2.0 per
cent.The news was widely expected by analysts.
The RBA
indicated in part that it awaits indicator adjustments to its rate cuts in
February and May this year.
Though the
Australian dollar shows signs of returning to more acceptable levels, the global economy is expanding
only at a moderate pace and some key commodity prices are much lower than a
year ago. This trend appears largely to reflect increased supply, including
from Australia. Australia's terms of trade are falling nonetheless.
The Board today judged
that leaving the cash rate unchanged was appropriate at this meeting.
Information on economic and financial conditions to be received over the period
ahead will inform the Board's assessment of the outlook and hence whether the
current stance of policy will most effectively foster sustainable growth and
inflation consistent with current targets.
Analysts
appear undecided whether the RBA will drop rates again this year or not. There
is a view that if another rate cut does occur this year, it will probably not be
until November or December.
So, what does it all mean? Who knows,
just
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