At its previous meeting the Bank also held the cash rate unchanged at 4.75% in May this year. Australia reported annual consumer price inflation of 3.3% in Q1 this year, up from 2.7% in the December quarter of 2010. Meanwhile, the Australian economy contracted -1.2% in the first quarter of this year due to the impact of natural disasters, placing annual GDP growth at a slower pace of 1.2% compared to 3.0% in the previous quarter.
Tuesday, June 7, 2011
Reserve Bank of Australia Holds Cash Rate at 4.75%
The Reserve Bank of Australia maintained the cash rate unchanged at 4.75%. The Bank said: "the Board judged that the current mildly restrictive stance of monetary policy remained appropriate". On inflation the Bank "expects that, as the temporary price shocks dissipate over the coming quarters, CPI inflation will be close to target over the next 12 months".