No rate relief as the Reserve Bank of Australia holds steady
THE Reserve Bank of Australia keeps the cash rate on hold at 3.5 per cent in July.
THE Reserve Bank of Australia has announced it will keep the cash rate on hold at 3.5 per cent following its July board meeting.
The decision to hold comes after the central bank cut the cash rate by half a percentage point in May and a quarter of a percentage point in June.
In a statement accompanying the decision, RBA Governor Glenn Stevens said that the Australian economy grew faster than expected in early 2012, although there had been signs of weakening in Europe and China.
He said the RBA expected inflation to remain within the RBA's target band of two to three per cent.
"At today's meeting, the board judged that, with inflation expected to be consistent with the target and growth close to trend, but with a more subdued international outlook than was the case a few months ago, the stance of monetary policy remained appropriate,'' he said.