The Reserve Bank has sat on its hands today in the wake of its controversial, budget-day interest rate cut in May.
“Taking account of the available information, and having eased monetary policy at its May meeting, the board judged that holding the stance of policy unchanged at this meeting would be consistent with sustainable growth in the economy and inflation returning to target over time,” Governor Glenn Stevens said.
“The Reserve Bank has maintained a ‘neutral stance’ – indicating that policymakers will assess more information before deciding the next move on rates,” CommSec chief economist Craig James said.
The RBA, however, showed little concern about the housing market, noting while dwelling prices had “begun to rise recently”, it also noted a large supply of apartments were due to come into the market in the next couple of years as well as a more cautious attitude to lending by some banks.
The comments come after dwelling prices rose 3 per cent and 1.6 per cent in Sydney and Melbourne, respectively, in May.
Source: The Australian Business Review