The official interest rate is set to remain at 4.5 per cent, the Reserve Bank of Australia has announced.
The Reserve Bank of Australia (RBA) has announced that it is maintaining the interest rate at 4.5 per cent.
Glenn Stevens, governor of the organisation, went to on to explain the monetary policy decision.
He stated that the output growth in the country over the year "is likely to be about trend, even though the effects of earlier expansionary policy measures will be diminishing".
It was pointed out that Aussie credit conditions for a selection of sectors remains difficult, but in terms of business it has been stabilised.
"Consumption spending is recording a modest increase at present, with households displaying a degree of caution, but most indicators suggest business investment will increase over the coming year," Mr Stevens added.
But he revealed that credit outstanding for housing had continued to expand, although the upward pressure on property prices appeared to have decreased.
An expected growth in wage increase has become apparent, Mr Stevens noted, while the recently announced inflation data was in line with the RBA's May predictions.
One of the reasons for the organisation keeping rates the same was due to the global outlook remaining "somewhat uncertain", as well as inflation being near to its target and expansion "likely to be close to trend".
In June, the RBA maintained the rate at the same level it is now and stated there was a "good deal more caution" since the previous meeting at the beginning of May, when the levels were increased from 4.25 per cent to 4.5 per cent - the last rise to date.
After this, the ANZ - which offers a range of credit cards - declared it would be upping its rates on term deposits and lending products by 0.25 per cent as a result of the enlargement.
By Nate Sawyer
