The Reserve Bank has left official cash rates on hold for the month of August.
Citing global uncertainty and unexpected weak consumer spending in guiding the Reserve Bank to this decision. However, the RBA remains concerned about the medium-term outlook for inflation, and if the recent inflation figures are anything to go by, interest rates do not seem to remain on hold for much longer.
The RBA Governor, Glenn Stevens, rejected recent suggestions that the RBA was contemplating rate cuts stating that whilst near term activity was weaker than what the RBA had expected 3 months ago, but they remained confident of the fact that with the continued Chinese demand continuing and a significant pipeline of mining-related investment projects on the horizon that will continue to spur inflation to uncomfortable levels for the RBA.
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