Australia's Cash Rate Stays Unchanged At 2.5%

Getty/ Brendon Thorne

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.

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