The Reserve Bank has left rates on hold at their current all-time low, as it waits for a crucial update on inflation due out on July 27. The central bank retained the cash rate at 1.75 per cent, a level first struck in May after a surprise 25 basis point reduction. The result matched market expectations, with analysts tipping a cautious statement ahead of the release of June quarter consumer price data.
The prospect of the RBA reinserting an easing bias in its commentary had been the major talking point ahead of the meeting, and while the central bank did not explicitly declare such a bias, it significantly tweaked its language. RBA Governor Glenn Stevens did, however, expand on his summary to say the Reserve Bank was willing to act if need be.
In the closely-watched summary of the decision Governor Glenn Stevens said the Reserve Bank was willing to move again if need be. It represented a shift in tone that would allow the RBA to lower rates next month if inflation numbers disappoint.
Last month there was no reference to the potential for an adjustment.
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