- Glenn Stevens, RBA Governor
The Reserve Bank of Australia left the official cash rate unchanged after assessing an effect recent global financial turbulence has had on domestic growth, but kept doors open for further monetary policy easing if economic conditions worsen substantially. The central bank kept the cash rate at record low of 2%, a decision which was widely expected by economists. While weak inflation has provided the RBA with scope to ease monetary policy further, the Governor Glenn Stevens decided that strong employment and prospects for growth meant the bank could use its toolkit when a strong necessity arises. In 2015, the Australian economy created the most jobs in nine years, pushing the unemployment rate below 6%-6.25%, overshooting the central bank's predictions. On the international outlook, the RBA reiterated its mixed outlook for China's economic growth moderating, while other advanced economies have enjoyed a more strong performance over the past year.
Meanwhile, Australia's current account deficit widened the most in 15 years in the December quarter. The current account shortfall expanded from $18.8 billion in the third quarter to $21.1 billion in the three months through December.
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