RBA comfortable with rates settings

The Reserve Bank is comfortable with interest rates currently set at 4.5 per cent and has no obvious plans to raise or cut rates in the next few months. The minutes of the last RBA board meeting were released this week and indicate that the central bank may not move again on interest rates for some months, or at least until there are clear signs of economic conditions changing significantly.

“In the subsequent two months [from May] with economic growth close to trend and inflation expected to decline to the target range later in the year, the board had felt comfortable with the existing level of interest rates, particularly in an environment where there was a significant degree of market volatility,” the minutes read. “The board therefore judged the existing level of the cash rate as still appropriate and decided to leave it unchanged for the time being, pending further information.”

Source: The Advisor