RBA Repeats Steady Cash Rate Likely as Domestic Demand Boosted

Australia’s central bank reiterated the most prudent course is likely to be a period of steady interest rates as it noted low borrowing costs are helping boost domestic growth.

“A strong pick-up in dwelling investment was in prospect and there was some evidence that consumer demand had strengthened a little,” the Reserve Bank of Australia said in minutes released today of its April 1 meeting, where it left the cash rate at a record-low 2.5 percent. “However, many businesses appeared to be waiting for an increase in current demand to occur before they were willing to increase investment spending.”