The Reserve Bank has taken a ‘wait and see’ attitude to the economy in its first meeting for the year, opting to leave the Official Cash Rate unchanged at 3.0 per cent.
In a statement announcing the Bank’s decision, Governor Glenn Stevens said that the “significant easing in monetary policy” last year is already having a positive effect, particularly in the housing sector.
“There are indications of a prospective improvement in dwelling investment, with dwelling prices moving higher, rental yields increasing and building approvals higher than a year ago”, Governor Stevens said.
He concluded by saying that while it sees no need for change at the moment, the Reserve Bank would be prepared to further drop interest rates, “should that be necessary to support demand”.