Tough-talking RBA takes the cautious approach

A deteriorating labour market and rising inflation mean compelling arguments can be made for both lowering and raising the cash rate. Without any clear signals, the RBA is unlikely to make any move in the near term.

Following a month off, the Reserve Bank of Australia has returned in 2014 with a slightly more upbeat interpretation of the domestic economy. But although low lending rates are boosting activity, the RBA is unlikely to make a move anytime soon.

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