The Australian official cash rate has been left at 2.5%,
the same as New Zealand's pivotal cash rate, as the Reserve
Bank of Australia waits for recent cuts to work their way
through the economy.
RBA governor Glenn Stevens said in a statement recent
information was consistent with global growth running a bit
below average this year, with reasonable prospects of a
pick-up next year.
Commodity prices had declined from their peaks, but generally
remained at high levels by historical standards.
Inflation in most countries remained well contained.
''Volatility in financial markets has increased and has
affected a number of emerging market economies in particular.
Notwithstanding the higher volatility, Australian
institutions have ample access to funding markets.''
In Australia, the economy had been growing a bit below trend
over the past year, Mr Stevens said.
That was expected to continue in the near term as the economy
adjusted to lower levels of mining investment. The
unemployment rate had edged higher.
Australian inflation was consistent with the medium-term
target of between 2% and 3%.
In New Zealand, the inflation target was between 1% and 3%.
With growth in labour costs moderating, Australian inflation
was expected to remain within the target over the next one to
two years, even with the effects of the recent depreciation
of the exchange rate, he said.
''The easing in monetary policy since late 2011 has supported
interest-sensitive spending and asset values, and further
effects can be expected over time, including from the
declines in rates seen over recent months.''