Glenn Stevens has yet again held interest rates at 2.50% and thereby again made no move to lower the AUD. The RBA has been in recent months accused of not acting in the best interest of the Australian business and consumer sector. Although Australia is currently experiencing low interest rates that is far more to give when compared to Europe.
The RBA points to a weakening property market and only a slow growth in business confidence. Retail interest rates are reducing as the market is starting to compete in weakening property market. Overall, the Bank still expects growth to be a little below trend over the year ahead.
The RBA is still uneasy with the strong AUD but is happy with the fiscal setup leaving the economy in healthy but moderate growth stage. There are no indication of a rate hike in Australia in the near future and with tension, in Russia and the Middle East, not much interest rate moves are expected from other countries.