At it’s board meeting today, the RBA decided to leave interest rates unchanged at 3.25 percent.
According to RBA Governor Glenn Stevens, demand in Australia has not weakened as much as in other countries, and the financial system remains strong.
“The Australian financial system remains strong and the monetary policy transmission process is working to deliver large reductions in interest rates to end borrowers.”
He did point to a weaker economy with consumer sentiment remaining fragile and hinted that these contiditions were expected to continue in the near future.
Stevens said that the board are satisfied with where interest rates are sitting at the moment, with market and mortgage rates already considerably low.
The board will reconsider its position at the next meeting.