RBA meeting September 2011: Rates On Hold at 4.75%

The Reserve Bank of Australia (RBA) has left official interest rates unchanged at 4.75 per cent at its board meeting on September 6, 2011.

RBA decision to keep the official cash rate on hold met the expectation of financial markets:

• The outlook for the global economy is less clear than it was earlier in the year.
• Australia's terms of trade are still at very high levels and national income has been growing strongly.
• The near-term growth outlook continues to look somewhat weaker than was expected a few months ago.
• Growth in employment has moderated over recent months and the unemployment rate has been little changed, near 5 per cent.
• Credit growth has declined over recent months and is very subdued by historical standards.
• Year-ended CPI inflation should start to decline towards the end of the year, as temporary weather-related effects reverse.

So the Board judged that it was prudent to maintain the current stance of monetary policy. In future meetings, the Board will continue to assess carefully the evolving outlook for growth and inflation.

Economists expect the RBA will keep rates on hold for the next few months but believe a worsening in the world economy could trigger a cut later this year.

However some lenders already cutting their rates. Please fill out the form on this page to find out which Mortgage Lender in Australia offers the best Home Loan following this RBA decision...