RBA Interest Rate Announcement March 2015
The RBA today has decided to leave rates unchanged today. The financial markets had it at a 50-50 chance of a cut today but the RBA erred on the side of caution. Interestingly the commentary from the RBA was quite negative but it would seem they are seeing what impact last month’s rate cut would have in the coming months.
Here is the summary of what the RBA said:
- The global economy is moving at a moderate pace. Same as last month.
- Low commodity prices, specifically energy, will temporarily lower inflation rates. Same as last month.
- Global financial conditions are very accommodative. Same as last month.
- Australian growth is below trend with unemployment still a historically high levels. Same as last month.
- The RBA still believes the Australian dollar is overvalued. Same as last month.
- Inflation is at the lower end of the target range.Same as last month.
- RBA sees risks in the housing market specifically Sydney.