At its meeting on Tuesday 7 July 2009, the Reserve Bank Board decided to leave the cash rate unchanged at 3%. Reserve Bank Governor Glenn Stevens said the global economy is stabilising, after a sharp contraction in demand during the December and March quarters.
However, Mr Stevens said credit conditions remain tight and the effects of economic weakness on asset quality present a challenge. The Board’s current view is that the outlook for inflation allows some scope for further easing of monetary policy, if needed. Mr Stevens said that, in assessing how it might use that scope, the Board will continue to monitor how economic and financial conditions unfold and how they impinge on prospects for a sustainable recovery in economic activity.
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