Rate Cuts are on Hold For Another Consecutive Month – Said RBA
“As per the RBA meeting today, the board decided to keep the interest rates on hold at 2.25 per cent for another consecutive month”, statement by Glenn Stevens, Governor: Monetary Policy Decision.
The global economy is expected to have moderate growth in 2015. But as analysed the commodity prices have declined over the past year, in some cases sharply, also financing costs for creditworthy borrowers remain remarkably low.
The information collected shows that the growth is continuing at a quite lower level than expected, resulting in rising unemployment rate than the past year.
As a result of lower interest rates, dwelling prices continue to rise strongly in Sydney, also credit is recording moderate growth overall. The continuous decline in the Australian dollar is also a matter of concern.
So in the today’s meeting RBA decided to keep interest rate to 2.25 percent for some time. There will be a rate cut but it is not the right time to do so. RBA will keep thinking on the same and discuss this topic in forthcoming meetings.
News Source: http://www.rba.gov.au/media-releases/2015/mr-15-05.html