RBA keeps cash rate unchanged at 1.75% for June

The Reserve Bank of Australia has left the official cash rate unchanged at 1.75% for the month of June.

The cash was cut by 25 basis points in May, which was the first time the rate had been cut in the space of 12 months.

RBA governor Glenn Stevens said in a statement today leaving the cash rate unchanged is “consistent with sustainable growth and inflation returning to target over time”.

“In Australia, recent data suggests overall growth is continuing, despite a very large decline in business investment,” Stevens said.

“Other areas of domestic demand, as well as exports, have been expanding at a pace at or above trend. Labour market indicators have been more mixed of late, but are consistent with continued expansion of employment in the near term.

“Inflation has been quite low. Given very subdued growth in labour costs and very low cost pressures elsewhere in the world, this is expected to remain the case for some time.”