World Economy

RBA Leaves Rates Unchanged

RBA Leaves Rates UnchangedRBA Leaves Rates Unchanged

The Reserve Bank of Australia kept the cash rate unchanged at 2% while explicitly saying there was room to cut rates because inflation was likely to remain “low” and “a degree of spare capacity” would remain in the economy, Reuters reported. In a statement on the RBA website, Governor Glenn Stevens said: At today’s meeting the board judged that the prospects for an improvement in economic conditions had firmed a little over recent months and that leaving the cash rate unchanged was appropriate at this meeting. Members also observed that the outlook for inflation may afford scope for further easing of policy, should that be appropriate to lend support to demand.