The RBA has left the official cash rate unchanged at 2.5%, saying it would still like to see the dollar lower.
The Australian dollar has depreciated by around 15 per cent since early April, although it remains at a high level. It is possible that the exchange rate will depreciate further over time, which would help to foster a rebalancing of growth in the economy.
Here’s the key points from the statement:
- Australia’s economy will probably grow below trend in the near term
- Growth in labour costs has moderated, so in the near-term the inflation target will be hit
- There are signs of increased demand for loans from households
Full statement here.