Based on May 06, 2014 Board meeting, the board decided to leave the cash rate unchanged by 2.5%. Monetary policy is appropriately to foster sustainable growth in demand and continued accommodative to support the demand. Many are enjoying the 9 straight months of record low interest rates, would it sustain and help the growth to strengthen the market?
According to RBA Governor Glenn Stevens, “On present indications, the most prudent course is likely to be a period of stability in interest rates.” There are some factors which downturn to help the market. Signs of improvement in investments in other sector are soften and demand for labor has been weak. Therefore, unemployment has risen and exchange rates become low.