Mortgage holders are increasingly unlikely to see another interest rate cut as signs grow consumers have got their spending mojo back.
After its final meeting of the year yesterday, the Reserve Bank board left the official cash rate at its equal 54-year low of 2.5 per cent. It was the fourth consecutive month the bank had left rates unchanged.
Governor Glenn Stevens signalled the bank was unlikely to cut rates further, noting there were already signs they were starting to work.
A lift in consumer and business confidence, more money flowing into the housing and sharemarkets and increased appetite for credit among households were all positive signs. And in recognition that further rate cuts were off the bank's agenda, Mr Stevens again tried to talk down the Australian dollar.
"A lower level of the exchange rate is likely to be needed to achieve balanced growth in the economy," he said.