RBA - Rates Unchanged

The RBA has again left rates unchanged but continues to leave the door open for another easing if inflation drops later in the year.

The press release accompanying the rates announcement indicated that China seems to be saving our economy from enduring a deeper contraction at this stage while Europe and the USA haven't enjoyed the same support. It also acknowledged the strength in the housing sector.

Business investment is still weak it concluded though and is likely to weaken further in line with a continued weakening in capacity utilisation. This is one of the key factors that could drag inflation down making way for another easing.

http://www.rba.gov.au/MediaReleases/2009/mr_09_15.html