Explain Monetary Policy and how/why it is used to regulate Australia's economy.

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…rates would help to offset the first of these risks but would amplify the second. In its policy deliberations the Board has had to take into account the balance of these risks and the way they have evolved over time. The current assessment of the economic outlook, the case for an easing was judged to have weakened since June, and thus the cash rate was again kept unchanged at both the July and August meetings.