RBA Decision

There were no surprises with the RBA's decision to leave rates on hold yesterday. The statement accompanying the decision paints the picture of a board that seems to be happy with the cash rate staying where it is for some time. There were a few tweaks from the last statement however showing that they have a little more confidence in the Australian economy. The next CPI at the end of Oct is likely to be the only thing capable of changing their rates complacency for the time-being. I've pasted a few key sentences from the statement below and the full statement can be found HERE

Through to mid 2011, underlying inflation is likely to be in the top half of the target zone, while CPI inflation will probably be just above 3 per cent for a few quarters due to the impact of the tobacco tax changes.
The current setting of monetary policy is resulting in interest rates to borrowers around their average levels of the past decade. With growth in the near term likely to be close to trend, inflation close to target and with the global outlook remaining somewhat uncertain, the Board judged this setting of monetary policy to be appropriate for the time being.