The Reserve Bank kept the official cash rate unchanged at 2.5% at its monthly meeting this afternoon, in line with economists’ expectations.
The meeting comes just days before the federal election, in which debate over the strength of the economy has played a large part.
In a statement written by Governor Glenn Stevens, the RBA said global conditions remain “accommodative”, but noted volatility has increased and has affected emerging market economies.
“In Australia, the economy has been growing a bit below trend over the past year. This is expected to continue in the near term as the economy adjusts to lower levels of mining investment.”
Stevens also noted the interest rate cuts since 2011 have helped support some spending and asset values, and said more effects will be noted over time.
“The Australian dollar has depreciated by around 15% since early April, although it remains at a high level. It is possible that the exchange rate will depreciate further over time, which would help to foster a rebalancing of growth in the economy.”
“At today’s meeting, the Board judged that the setting of monetary policy remained appropriate.”