The RBA has left the official cash rate on hold at 1.5 per cent at its meeting yesterday.
With inflation still low, but coming in higher than expected in October, newly-appointed governor Phillip Lowe was content to continue his wait-and-see approach. His call also came on the back of stronger-than-expected terms of trade.
“Taking account of the available information, and having eased monetary policy at its May and August meetings, the Board judged that holding the stance of policy unchanged at this meeting would be consistent with sustainable growth in the economy and achieving the inflation target over time,” the Board said.
In the coming months, the RBA will no doubt be keeping an eye on economic growth, which was weak in the last quarter, and the Australian dollar, which is still hovering around the US77c mark.