Australia’s central bank said economic developments in the past month had done nothing to sway its resolve to keep interest rates steady for a while, noting there had been further signs that low borrowing costs were supporting growth.
In the minutes of its April 1 policy meeting, the Reserve Bank of Australia (RBA) again said the local dollar was high by historical standards, and that its recent appreciation meant the exchange rate was now less effective in helping the economy achieve balanced growth.
“At recent meetings, the Board had judged that it was prudent to leave the cash rate unchanged and members noted that the cash rate could remain at its current level for some time if the economy was to evolve broadly as expected,” the minutes said.
“Developments over the past month had not changed that assessment.” The RBA kept its cash rate at a record low 2.5 percent, where it has been since August. In all, the central bank has slashed 225 basis points off its benchmark rate since late 2011.
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