SYDNEY, Sept 6 (PNA/Xinhua) — The Reserve Bank of Australia (RBA) has decided to leave official interest rates unchanged and at the record low 1.5 percent which it had set in August after its board meeting on Tuesday.
Outgoing RBA governor Glenn Stevens said despite already sluggish inflation being forecast to remain low for some time, it was too early to gauge the impact of the two interest rate cuts the central bank has made so far this year.
“Having eased monetary policy at its May and August meetings, the board judged that holding the stance of policy unchanged at this meeting would be consistent with sustainable growth in the economy and achieving the inflation target over time,” Stevens said in a statement.
In Australia, recent data suggest that overall growth is continuing, despite a very large decline in business investment, helped by growth in other areas of domestic demand and exports.
Labor market indicators continue to be somewhat mixed, but suggest continued expansion in employment in the near term, Stevens said.
Stevens will retire from his role on Sept. 17 and will be replaced by his deputy Philip Lowe.