The Reserve Bank of Australia has left the cash rate unchanged at 2 per cent for September. This will be the fourth consecutive month the rate has remained unchanged.
RBA Governor, Glen Stevens said “the economy is likely to be operating with a degree of spare capacity for some time yet, with domestic inflationary pressures contained. Inflation is thus forecast to remain consistent with the target over the next one to two years, even with a lower exchange rate.
“In such circumstances, monetary policy needs to be accommodative. Low interest rates are acting to support borrowing and spending,” said Mr Stevens.
The Board concluded that leaving the cash rate unchanged for September was the most appropriate course.