Main points from the accompanying statement:

  • Says exchange rate remains high by historical standards
  • Sees period of stability for rates
  • Says public spending is set to be subdued
  • Says $A to be less of a boost to the economy
  • Says it sees an improvement in labour market but it will be some time yet before unemployment declines consistently
  • Says inflation consistent with target, likely to remain so

Looking ahead, continued accommodative monetary policy should provide support to demand, and help growth to strengthen over time. Inflation is expected to be consistent with the 2–3 per cent target over the next two years.
In the Board’s judgement, monetary policy is appropriately configured to foster sustainable growth in demand and inflation outcomes consistent with the target. On present indications, the most prudent course is likely to be a period of stability in interest rates.

Link to full text: Statement by Glenn Stevens, Governor: Monetary Policy Decision

Added: The RBA keeps rates unchanged at 2.5%. A comparison of statements

There you have it. Unsurprising on the whole.

I’ll pass you over to Iron Mike now, he’ll sort out the RBA!