The Reserve’s statement announcing that rates are on hold - as they have been for a year - is very similar to the one it issued after its meeting a month ago. "In the board’s judgement, monetary policy is appropriately configured to foster sustainable growth in demand and inflation outcomes consistent with the target.
In other words the central bank is keeping interest rates on hold because the handover from the resources investment boom to the rest of the economy is still not definitely confirmed.
It says again, for example, that consumer demand is only growing moderately, that resources sector investment is beginning to decline significantly, and that signs of improved private sector investment "remain tentative as firms wait for more evidence of improved conditions before committing to significant expansion".
Read more here: SMH