Too soon for recovery: RBA

The Reserve Bank of Australia believes it is “too soon” to be certain the global economy is on the road to recovery.

The minutes of the central bank’s latest board meeting show that the RBA is cautious of being too optimistic about the economic recovery.

“Members concluded on balance that the global economy was most likely on a sustained, if modest, recovery path, though it was still too soon to be confident of this assessment,” the minutes said.

The bank left the cash rate unchanged at three percent in September, hinting at a possible rate rise if improved prospects for economic growth were realised.

“The meeting concluded that the balance was best struck by leaving the cash rate unchanged for the time being, pending further evaluation of incoming information at future meetings,” the minutes said.

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