The Reserve Bank of Australia (RBA) board has left the official cash rate unchanged at 1.75 per cent following their latest meeting July 5th 2016.
Whilst acknowledging the extreme uncertainty surrounding the shock Brexit vote and the subsequent fallout throughout Europe, the RBA has indicated it does not expect Australia to be hurt by the wave of uncertainty triggered by last weekends election.
Opting to leave the official benchmark cash rate at 1.75 per cent for a second month, board members have shifted their focus on second-quarter inflation figures due before the August rate meeting.
Many experts believe the RBA is seeking to maintain a steady hand so as to calm any ‘lingering jitters’ over last month’s surprise UK referendum outcome as well as global and domestic political turmoil.
Governor Glenn Stevens has this to say: “An effects of the referendum outcome on global economic activity remain to be seen and, outside the effects on the UK economy itself, may be hard to discern.”
For more commentary surrounding the latest cash rate announcement, head here.
