No need for rates to fall further- Shadow RBA

Australia's official interest rates have gone as low as they need to and should remain on hold in September, the ANU RBA Shadow Board has found. The Board of the Reserve Bank of Australia (RBA) lowered the official cash rate by 25 points to a record low 1.5 per cent in August and will meet on Tuesday 6 September to review interest-rate settings. It will be the last board meeting for outgoing RBA Governor Glenn Stevens. Chair of the RBA Shadow Board Dr Timo Henckel said while employment figures could be showing a softening labour market, there was no need for rates to go any lower. "After the RBA's decision in August to cut the cash rate to a historic low of 1.5 per cent, there is good reason to pause. The RBA Shadow Board clearly believes that the cash rate should not be cut any further," Dr Henckel said. He said the RBA Shadow Board attached a 57 per cent probability that holding rates steady was the appropriate policy setting, compared to 54 per cent in August.