The Reserve Bank of Australia has kept the official cash rate on for April confirming at 2.50%p.a for the eighth month in a row.
In arguably the only news that was guaranteed this April Fools Day, the RBA Board has announced that it has retained the record low rate and an overall policy of stability.
RBA Governor Glenn Stevens described financial conditions overall as “accommodative”, noting that some “emerging market countries conditions are considerably more challenging than they were a year ago.”
- The local economy grew at a below trend pace in 2013
- Inflation is expected to be consistent with the 2–3% target over the next two years
- Some business indicators have improved, but resources sector investment spending is set to decline
- Demand for labour has remained weak, edging unemployment higher
- Credit growth is slowly picking up
Looking ahead, Mr Stevens said the steady course from the RBA is expected to support demand and help growth.
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