At its meeting today, the RBA decided to leave the cash rate at 3.0% which is the rate it has been since 5 December 2012.
• Global growth is forecast to be a little below average for a time, but the downside risks appear to be reduced
• Europe remains in recession
• the United States is experiencing a moderate expansion
• growth in China has stabilised at a fairly robust pace
• In Australia, growth was close to trend over 2012
• Inflation is consistent with the medium-term target, with both headline CPI and underlying measures at around 2.25%. The Bank’s assessment remains that inflation will be consistent with the target over the next one to two years which would afford scope to ease policy further.
If you would like to see the full decision commentary, here is the link http://www.rba.gov.au/media-releases/2013/mr-13-06.html
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