After rate cuts in May and June the RBA decided to keep the cash rate at 3.5%. This was in line with market expectations and off the back of faster than expected growth in our economy during early 2012.
According to statement made by the RBA Governer, Mr Glenn Stevens, "Interest rates for borrowers have declined, to be a little below their medium-term averages. Business credit has increased more strongly in recent months, though credit growth remains modest overall. The housing market remains subdued. The exchange rate has been volatile recently, but overall remains high."
With the easing in monetary policy already this year the market remains split as to whether we will see a cut in the official cash rate to 3.25% when the RBA meets again in August.