RBA is due to deliver its monthly cash rate decision, which is widely expected to see the bank remain on hold at a record-low 2%.
Recent policy statements from the RBA suggest that the bank is waiting to see what impact previous rate cuts have had on the real economy before making any further adjustments to policy.
In February and May the RBA lowered interest rates to encourage demand, and in some ways these efforts appear to already be paying off.
Today Australia released retail sales data. Retail sales rose a seasonally-adjusted 0.7% month-on-month in June, and 0.8% in volume terms, according to the Australian Bureau of Statistics, coming in stronger than the revised 0.4% growth in the value of sales recorded in May.
Household goods retailing surged 0.8% over the month, while food retailing rose 0.2%, and dining out retailing climbed 0.3%. Department store sales was the only retail category to decline in June, sliding 0.2%. Sales growth in June was stronger than the rise of 0.5% forecast by most analysts.
The economy is still suffering through the post mining-boom investment drought, although this was to be expected, and the impact on the broader economy has not been as bad as some feared.
