RBA Leaves Cash Rate Unchanged Talk to us Phone us Email us Breadcrumbs UniBank About Us Member news & media 2014 RBA Leaves Cash Rate Unchanged 07 October 2014 07 October 2014 RBA Leaves Cash Rate Unchanged The Reserve Bank of Australia at it’s meeting today, Tuesday 7 October 2014, has decided to leave the cash rate unchanged at 2.50% p.a. The following is an excerpt from the official RBA Media Release; “At its meeting today, the Board decided to leave the cash rate unchanged at 2.5 per cent. … Growth in the global economy is continuing at a moderate pace. China’s growth has generally been in line with policymakers’ objectives, though some data suggest a slowing in recent months. Weakening property markets there present a challenge in the near term. Commodity prices in historical terms remain high, but some of those important to Australia have declined further in recent months. … In Australia, most data are consistent with moderate growth in the economy. Resources sector investment spending is starting to decline significantly, while some other areas of private demand are seeing expansion, at varying rates. Public spending is scheduled to be subdued. Overall, the Bank still expects growth to be a little below trend for the next several quarters. … Looking ahead, continued accommodative monetary policy should provide support to demand and help growth to strengthen over time. Inflation is expected to be consistent with the 2–3 per cent target over the next two years. In the Board’s judgement, monetary policy is appropriately configured to foster sustainable growth in demand and inflation outcomes consistent with the target. On present indications, the most prudent course is likely to be a period of stability in interest rates.”
