RBA leaves rate at 2pc
The RBA Board again decided to leave the cash rate unchanged at 2.0%, judging that "the prospects for an improvement in economic conditions had firmed a little over recent months and that leaving the cash rate unchanged was appropriate"
Heading into the festive season, the decision to leave rates unchanged was not a surprise. The last time the rates were raised at a December Board meeting was in 2009.
With a large decline in capital spending in the mining sector, Australia's falling terms of trade and a slow down in the dwelling price growth in Sydney and Melbourne, low interest rates are acting to support borrowing and spending.
Read the press release here