No change – for now

There may have been no change to interest rates this week, but the Reserve Bank is certainly not shutting the door on further cuts this year.

At its meeting this week, the Bank Board kept the Official Cash Rate on hold at 2.75 per cent, its lowest level in more than 50 years.

In a statement outlining the Board’s decision, Reserve Bank Governor Glenn Stevens remarked on the recent drop in the Australian dollar, together with ‘global growth running a bit below average’, adding that the ‘easier financial conditions now in place will contribute to a strengthening of growth over time, consistent with achieving the inflation target’.

“The Board also judged that the inflation outlook, as currently assessed, may provide some scope for further easing, should that be required to support demand”, Governor Stevens concluded.