The Reserve Bank of Australia has kept the cash rate at 2.5 per cent, as the Australian economy shows signs of improvement.
“The earlier decline in the exchange rate is assisting in achieving balanced growth in the economy, but less so than previously as a result of the higher levels over the past few months,” governor Glenn Stevens said in a statement.
“There has been some improvement in indicators for the labour market in recent months, but it will probably be some time yet before unemployment declines consistently.”
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The RBA board believes the low level of its cash rate will help foster sustainable growth.
“Looking ahead, continued accommodative monetary policy should provide support to demand, and help growth to strengthen over time.”
“On present indications, the most prudent course is likely to be a period of stability in interest rates.”
The most recent interest rate movement was a quarter of a percentage point cut in August.
