No change to interest rates

The Reserve Bank of Australia (RBA) has left the cash rate on hold at 3.5 per cent for the second consecutive month.

At its meeting on Tuesday (7 August), the RBA made the expected decision to keep the cash rate steady. This follows cash rate cuts in May and June, and a hold on rates in July.
 
Many economists predicted last week said a cash rate decrease for August was unlikely, although they commented that another rate cut could come later in the year.
 
RBA governor Glenn Stevens said that moderate growth in the domestic economy, plus earlier cash rate cuts had prompted the decision.
 
"As a result of the sequence of earlier decisions, monetary policy is easier than it was for most of 2011," he said.
 
"In Australia, most indicators suggest growth close to trend overall.
 
"Labour market data show moderate employment growth, even with job shedding in some industries, and the rate of unemployment has thus far remained low."
 
RELEAEE DATE: Tuesday, 7 August 2012