In a statement Governor Glenn Stevens said that growth in the global economy had softened, following a more promising start to the year.
Declining commodity prices have led to lower inflation, and Chinese growth has moderated (but appears to have ceased slowing further).
Europe continues to be the prime source of economic weakness, with both banks and nations having difficulty regaining a solid economic footing.
Governor Stevens warned that Europe would remain a potential source of adverse shocks and volatility for some time.
In Australia underlying inflation is close to 2%, and the Reserve Bank anticipates it being in line with the target for the next year or two.
Earlier in the year two consecutive rate cuts saw Australia’s interest rate drop from 4.25% to its present level of 3.5%.
Source:
bankingtimes.co.uk
