Consumers Encouraged by RBA Keeping Rates Low

Australia’s central bank kept interest rates at record lows for a 14th straight policy meeting on Tuesday, saying the stimulus was justified given the outlook for sub par growth even as consumers showed signs of opening their wallets.

The result surprised no one but the local dollar did edge higher as the Reserve Bank of Australia (RBA) refrained from escalating its verbal campaign for a lower currency.
“Overall, the Bank still expects growth to be a little below trend for the next several quarters,” said RBA Governor Glenn Stevens, in what was a carbon copy of recent statements.  “On present indications, the most prudent course is likely to be a period of stability in interest rates.”