RBA holds rates as global uncertainty continues

Minutes from the Reserve Bank of Australia's monetary policy meeting, published on Tuesday, shows the continued uncertainty over the international outlook forced the policy board to leave interest rates unchanged.

Minutes of the September 6 meeting show that a key issue discussed between members was the extent to which recent global and domestic developments would reduce capacity pressures in the economy and, in due course, help to contain inflation.

Members agreed that while underlying inflation had remained consistent with the 2–3% target on a year-ended basis, there continued to be very little hard data available, as yet, on which to base such judgements.

Moreover, with credit growth slowing, declined asset prices and a high exchange rate, members considered that the current setting of monetary policy left the board well placed to respond to evolving global and domestic economic conditions.

As a result, the policy board decided to leave its benchmark cash rate unchanged at 4.75%.

Click here to read the minutes.