RBA: July cash rate unchanged at 3.5%

by Caroline Dann03 Jul 2012

The RBA has kept the cash rate unchanged at 3.5% for July, it announced this afternoon.

It brings an end to two consecutive months of cuts, confirming speculation of a 'wait-and-see' approach by many industry experts.
RBA governor Glenn Stevens said the RBA made the decision based on fluctuations in the European market, ‘low risk appetites’ and easing inflation rates.
"At today's meeting, the Board judged that, with inflation expected to be consistent with the target and growth close to trend, but with a more subdued international outlook than was the case a few months ago, the stance of monetary policy remained appropriate,” he said.
“Interest rates for borrowers have declined, to be a little below their medium-term averages. Business credit has increased more strongly in recent months, though credit growth remains modest overall. The housing market remains subdued. The exchange rate has been volatile recently, but overall remains high.”