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RBA leaves rates unchanged
Released 2 August 2011

The Reserve Bank of Australia (RBA) has kept interest rates at 4.75% despite concerns over inflation.    

REINSW CEO Tim McKibbin said the RBA decision was very responsible and reflected current uncertainty.

“Australia is currently operating in a two speed economy Australia. On one side we have the mining and resources sectors outperforming the rest of the world, and on the other side we have the retail sector not doing anywhere near as well,” he said.

“Investors are sitting on their hands in regard to the Carbon Tax waiting to understand what is going on and they are mindful of the recent turmoil in the US.”

Reserve Bank Governor Glenn Stevens left rates steady at 4.75% even though the June quarter headline consumer price index came in at the highest level since 2008. The CPI was 3.6% well above the RBA’s target band of 2% to 3%.

“On balance, the Board judged that it was prudent to maintain the current setting of monetary policy, particularly in view of the acute sense of uncertainty in global financial markets over recent weeks,” Stevens said in a statement.

“In future meetings, the Board will continue to assess carefully the evolving outlook for growth and inflation," he said.