The Reserve Bank of Australia has confirmed that the official cash rate is likely to remain at 2.5 per cent “for some time”.
Board members agreed to leave the cash rate unchanged at the monthly meeting on April 1, despite a “strong” housing market, according to the minutes, which were published yesterday.
“At recent meetings, the board had judged that it was prudent to leave the cash rate unchanged and members noted that the cash rate could remain at its current level for some time if the economy was to evolve broadly as expected,” the minutes said.
“Developments over the past month had not changed that assessment. There had been further signs that low interest rates were supporting domestic activity.”
The board also agreed that housing market conditions remained positive.
“Members noted that dwelling investment had increased moderately in the December quarter, with a pick-up in renovation activity, and that the high level of dwelling approvals in recent months foreshadowed a strong expansion in dwelling investment.”
Inflation and unemployment are likely to remain steady for the foreseeable future, according to the board.