At the RBA meeting today, the Board have made the decision to leave the cash rate unchanged at 2.5 per cent.
This result is in-line of global growth running marginally below average this year, with reasonable prospects of an interest rate increase early next year..
Commodity prices have declined, however remained at optimum levels by historical standards. Inflation in most countries remains stabilised.
Overall, global financial conditions remain very accommodative. Changes in the outlook for US monetary policy have increased volatility in financial markets, however long-term interest rates remain very low as there is sufficient funding available for creditworthy borrowers.
With growth in labour costs moderating, this is expected to remain the case over the couple years, even with the effects of a marginally lower exchange rate.
The RBA determined that the monetary policy implementation remains appropriate. The Board will continue to assess and adjust policy as needed to generate growth in demand and inflation.
Industry publications forecast Novembers meeting could see an interest rate cut on Melbourne Cup Day.