The Reserve Bank of Australia has announced it has kept the country’s official cash rate unchanged at 4.25 per cent, citing recent information surrounding the world economy.

 

In his statement on the monetary policy decision, RBA Governor Glenn Stevens said that while the world economy is set to grow at below-trand pace this year, he does not expect any deep downturn.

 

Mr Stevens said moderate growth in China, a softening Asian economy and a recent dip in inflation all contributed to the RBA leaving the rates unchanged.

 

Citing modest credit growth and interest rate levels, Mr Stevens said the rate decision was informed by the stabilisation of housing prices.

 

“The Board eased monetary policy late in 2011. Since then, its judgement has been that, with growth expected to be close to trend, inflation close to target and lending rates close to average, the setting of monetary policy was appropriate,” Mr Stevens concluded.