- Reserve Bank of Australia
As widely expected, the Reserve Bank of Australia kept the official cash rate on hold at a historic minimum of 2% for the seventh consecutive month. Yet, the central bank left the door open for a further cut in 2016 to provide support to demand in case the necessity arises. The RBA said that the nation's economy continued to expand moderately in the face of a large decrease in capital spending in the mining sector. Even though GDP growth remained below longer-term averages for some time, business surveys indicated a gradual improvement in conditions in non-mining sector over the past year. This was coupled by stronger growth in employment and a steady jobless rate. Inflation is predicted to be consistent with the target over the next one to two years, according to the RBA. Thus, in such circumstances, the central bank saw the need for the monetary policy to remain accommodative, as low interest rates are acting to support borrowing and spending.
Meanwhile, Australian building consents rose for the second month in a row, increasing a seasonally adjusted 3.9% on a month in October, signalling Australia's construction boom remained strong. Moreover, Australia's current account deficit shrank to $18.10 billion in the September quarter, from $20.51 billion in the preceding three-month period.
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