Amongst the backdrop of a mountain of worries including:-
- The continued European Debt Crisis;
- A very weak US Economy;
- High Australian dollar;
- cautious behaviour of Australian households; and
- very subdued lending growth.
The Reserve Bank has conceded that the near-term growth outlook is likely going to be weaker than the bullish stance that they had earlier in the year. Therefore they have adopted a more prudent approach and left rates on hold for the ninth consecutive month.
Whilst the RBA still believes in medium term there is still an inflation issue; however at this point in time they are carefully assessing the evolving nature of the continued economic crisis sweeping Europe and the US.
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