Investing.com - The Reserve Bank of Australia is not closing off the possibility of cutting the cash rate further, according to minutes of a Dec. 3 board meeting released Tuesday, but said it was important to first see the effects of earlier cuts.
The RBA said there had been further signs of the stimulatory effects of the cash rate at a record low 2.5% in an easing cycle that started in November 2011, most notably in the housing market, and additional effects were in profile.
"The Board's judgement remained that, given the substantial degree of policy stimulus that had been imparted, it was prudent to hold the cash rate steady while continuing to gauge the effects of earlier reductions, but not to close off the possibility of reducing it further should that be appropriate to support sustainable growth in economic activity, consistent with the inflation
target," the RBA said in the minutes.
The RBA said there had been further signs of the stimulatory effects of the cash rate at a record low 2.5% in an easing cycle that started in November 2011, most notably in the housing market, and additional effects were in profile.
"The Board's judgement remained that, given the substantial degree of policy stimulus that had been imparted, it was prudent to hold the cash rate steady while continuing to gauge the effects of earlier reductions, but not to close off the possibility of reducing it further should that be appropriate to support sustainable growth in economic activity, consistent with the inflation
target," the RBA said in the minutes.