The RBA today decided to keep interest rates at 3.5%. The RBA mentioned the world's softening economy and China's continued growth as competing factors for Australia. The labour market showed no signs of major problems with unemployment remaining low. Inflation has also stayed low, removing the need for an increase in interest rates but the bank acknowledged that the carbon tax will put some pressure on the inflation rate going forward.
Since there were no major problems with the economy, unemployment and inflation staying under control, the RBA left the rate unchanged for the month of August.
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