08 Jul July 2013 Newsletter

Welcome to our July newsletter

With the Reserve Bank of Australia (RBA) still assessing the effects of previous rate cuts, the central bank decided to leave the official cash rate on hold at a historical low of 2.75 per cent. The RBA last cut the cash rate – by a quarter of a percentage point – in May, having made four cuts in 2012. At the RBA board’s July 2 meeting, governor Glenn Stevens said global financial conditions “remain very accommodative”. “The easing in monetary policy over the past 18 months has supported interest-sensitive spending and asset values and further effects can be expected over time,” Mr Stevens said. “The pace of borrowing has remained relatively subdued, though recently there are signs of increased demand for finance by households.”