RBA remains key interest rate unchanged

The RBA remained its monetary policy unchanged at the last meeting on Tuesday. RBA Governor Glenn Stevens said that current level of key interest rate at 1.75% would support growth of economy and inflation level. This decision had been already expected by experts.

The RBA has cut its interest rate last time at meeting in May after economic data had signalled about the first way of deflation since world crisis in 2008. These data forced the central bank to move and cut inflation expectations.

According to new forecasts, inflation level will be near a lower border of 2%-3% range, but not in this range for some years.  The same expectations made experts thinking that the RBA should more aggressively ease its monetary policy, while market participants have already said about a possibility to cut interest rate by three times in the next year.