The challenge ahead for the RBA

Time is running out for the economy to rebalance away from the mining boom, and more stimulus may be needed to accomplish the task.

The Reserve Bank of Australia (RBA) left rates unchanged at the June board meeting and continues to indicate that they will remain that way for some time. But with household spending slowing and the construction boom more myth than reality, the RBA faces a massive challenge to keep the economy on track before mining investment collapses.

The cash rate was held at 2.5 per cent in June, the ninth consecutive month without a rate move, and based on the RBA’s inflation outlook it is implied that rates could be left unchanged for a couple of years.

{{content.question}}

Mastercard

{{ twilioFailed ? 'SMS Code Failed to Send…' : 'An SMS verification code has been sent ...' }}

Hi {{ user.FirstName }}

Looks like you have already taken a free trial

Please enter your payment details

We have sent you a code via SMS to {{user.DayPhone}}

please enter this code below to complete your SMS verification

We cannot send you a code via SMS to {{user.DayPhone}}

If you didn't receive SMS code please

SMS code cannot be sent due to: {{ twilioStatus }}

Please select one of the options below:

Looks you are already a member. Please enter your password to proceed

Please untick this box when using a public or shared device


Verify your mobile number to proceed...

Please check your mobile number below and press the Send Verification Code button. This will be used to complete your verification in the next step.

Please sign up for full access

Mastercard

Updating information

Please wait ...

Trial

Mastercard
{{ productPrice }} / day
( GST included )
Price $0
GST $0
Discount -{{productDiscount}}
TOTAL {{productPrice}}
  • Mastercard
  • Visa

Please click on the ACTIVATE button to finalise your membership

Mastercard

The email address you entered is registered with InvestSMART.

Please login or select "Don't know password"

Please untick this box when using a public or shared device


Register as a new member

(using a different email)

Related Articles