Cash Rate Update – October 2014

The Reserve Bank of Australia (RBA) has announced it will maintain the official cash rate at 2.50%.

Since the RBA’s last meeting the domestic economy has seen a decline in the Australian dollar due to a continued reduction in commodity prices and strength in the US dollar. If the lower Australian dollar is sustained it should support our non-mining exports however, notwithstanding a strong housing related market, the Australian economy overall remains soft. With inflation under control and a global economy not growing as quickly as expected the RBA will most likely remain on the sidelines for another 6 – 12 months.

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