RBA says further cuts possible

The Reserve Bank of Australia has signalled the possibility of further rate cuts in its November monetary statement, saying economic growth prospects for 2013 remain below trend.

On Tuesday, the cash rate was left unchanged at 2.5%.

“Overall, the outlook for the global economy is much as it was a few months ago… The prospect of a pick-up in conditions in many advanced economies is likely to see growth for the world as a whole improve from a below-average pace in 2013 to around average in 2014,” the RBA says.

“It was appropriate to hold the cash rate steady, but not to close off the possibility of reducing it further, should that be needed to support economic activity consistent with the inflation target.”