Australia loan rate stays at 2%01 December 2015 by News Desk
The Reserve Bank of Australia has kept national interest rates at 2.0% following its latest policy meeting.
Glenn Stevens, Governor of the Reserve Bank of Australia, said: “In Australia, moderate expansion in the economy continues in the face of a large decline in capital spending in the mining sector. Business surveys suggest a gradual improvement in conditions in non-mining sectors over the past year. This has been accompanied by stronger growth in employment and a steady rate of unemployment.
“Inflation is low and should remain so, with the economy likely to have a degree of spare capacity for some time yet. Inflation is forecast to be consistent with the target over the next one to two years.
“The global economy is expanding at a moderate pace, with some softening in conditions in the Asian region, continuing US growth and a recovery in Europe. Key commodity prices are much lower than a year ago, reflecting increased supply, including from Australia.
“The Federal Reserve is expected to start increasing its policy rate over the period ahead, but some other major central banks are continuing to ease monetary policy. While credit costs for some emerging market countries remain higher than a year ago, global financial conditions overall remain very accommodative.
“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.”