The Reserve Bank of Australia (RBA) has left the cash rate on hold at 0.25 per cent despite the fact many predicted the Board would announce a drop to 0.1 per cent and potentially overshadow the Federal Budget announcement..
Instead, the RBA decided to maintain the current policy settings, including the targets for the cash rate. Westpac predicted last week that they would do so, with plans to drop the rate next month.
Today’s statement by RBA Governor Philip Lowe doesn’t directly forecast any drops, although it does admit the national recovery is “likely to be bumpy and uneven” saying it will be “some time before the level of output returns” to pre-COVID levels.
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