Interest rates were once again left untouched at 4.75% when the Reserve Bank held its July meeting, which came as a surprise to many economists who had predicted an increase.
RBA Governor Glenn Stevens ascribed the decision to a number of factors: “The global economy is continuing its expansion, but the pace of growth slowed in the June quarter.”
“The supply-chain disruptions from the Japanese earthquake and the dampening effects of high commodity prices on income and spending in major countries have both contributed to the slowing", he said.