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RBA leaves cash rate on hold at 2.75%

RBA leaves cash rate on hold at 2.75%

4th June 2013

Source: The West Australian

The cash rate remains unchanged at 2.75% following today’s RBA monetary policy board meeting.

The Reserve Bank of Australia (RBA) has kept the cash rate unchanged at record low of 2.75 per cent at its June board meeting, saying that rate cuts in the past 18 months are helping the economy.

All but one of the 13 economists surveyed by AAP expected the RBA to hold its cash rate steady on June 4.

The RBA last cut the cash rate by a quarter of a percentage point at its May meeting, after making four cuts in 2012.

In a statement accompanying the decision, RBA governor Glenn Stevens said household spending had been helped by lower interest rates.

“Further effects can be expected over time,” Mr Stevens said on Tuesday.

“The pace of borrowing has thus far remained relatively subdued, though recently there have been some signs of increased demand for finance by households.

“The board judged that the easier financial conditions now in place will contribute to a strengthening of growth over time.”

Mr Stevens noted that the Australian dollar had fallen below one US dollar since the May board meeting but said it was still high considering the recent decline in commodity prices.