- September 7, 2010
- Posted by: admin
- Category: Finance News
As expected the RBA kept the cash rate on hold at 4.5% today
Despite the recent uptick in local data, the RBA’s forecasts for Australian economic growth and inflation remain unchanged.
With the general concern about the global economic outlook, emphasising that external conditions remain somewhat uncertain.
While local economic data shows the Australian economy has grown at the fastest pace in three years, ongoing economic uncertainty abroad ultimately forced the RBA to err on the side of caution when making the latest rate decision
The RBA continues to categorise the slowdown in China as a return to sustainable growth and notes that the commodity prices most important for Australia remain at very high levels.
The news did not come as a surprise, with many economists predicting the RBA would leave rates unchanged.
I would expect the RBA will give serious consideration to raising rates around November following the Q3 CPI in late October.