Despite the Australian dollar’s recent recovery, RBA October minutes suggest there will be no change to interest rates next month.
The economy’s indicators have shown signs of slight improvement and the RBA is keeping a close eye on economic indicators to monitor the success of its current easing cycle.
“The board’s judgement was that, given the substantial degree of policy stimulus that had been imparted, it would be prudent to leave the cash rate at the existing low level while continuing to gauge the effects,” the minutes reported.
“Members agreed that the bank should again neither close off the possibility of reducing rates further nor signal an imminent intention to reduce them.”
These comments clearly indicate a wait-and-see approach from the RBA as the economy slowly shows some signs of improvement.
