The Reserve Bank continues to hold its stance of ‘wait and see’, once again making no change to interest rates this week.
Announcing the decision, RBA Governor Philip Lowe noted that while the Australian economy experienced a sharp contraction in the June quarter, with output falling by 7 per cent, the decline in output was smaller than in most other countries and less than had earlier been expected.
A recovery is now under way in most of Australia, according to the Bank, however Governor Lowe added that the national recovery is ‘likely to be bumpy and uneven and it will be some time before the level of output returns to its end-2019 level’.
The official cash rate remains at .25 per cent, where it has been since the extra-ordinary double move in March this year.