The Reserve Bank of Australia (RBA) has left its official interest rate at 4.75%, which was consistent with market expectations.The RBA has increased rates four times this year, each by 25 basis points. Its last rate hike was on November 3.RBA governor Gl
The Reserve Bank of Australia (RBA) has left its official interest rate at 4.75%, which was consistent with market expectations.
The RBA has increased rates four times this year, each by 25 basis points. Its last rate hike was on November 3.
RBA governor Glenn Stevens said Australia’s strong exchange rate would assist, at the margin, in containing pressure on inflation over the period ahead.
Over the next few quarters, he said inflation is expected to be little changed, though it is likely to increase somewhat over the medium term if the economy grows as expected.
Following the RBA’s decision last month to lift the rate, and the subsequent interest rate increases by financial institutions, lending rates in the economy are now a little above average.
“The board views this setting of monetary policy as appropriate for the economic outlook,” he said.
The decision follows a string of weaker-than-expected economic indicators, among them being a meagre 0.2% increase in GDP growth over the September quarter.
The Australian dollar fell slightly to around 98.9USc after RBA’s comments.
