The Reserve Bank has left the official interest rate on hold at its record low of 2 per cent.
The announcement was made after the RBA met this afternoon and voted to keep the cash rate at two percent, which has remained unchanged since May.
“At today’s meeting the Board again judged that the prospects for an improvement in economic conditions had firmed a little over recent months and that leaving the cash rate unchanged was appropriate,” Governor Glenn Stevens said.
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“Members also observed that the outlook for inflation may afford scope for further easing of policy, should that be appropriate to lend support to demand. The Board will continue to assess the outlook, and hence whether the current stance of policy will most effectively foster sustainable growth and inflation consistent with the target.
Rates will now be on hold at least through to early February when the RBA board meets again.