The Reserve Bank of Australia said that the combination of easy monetary policy along with fiscal stimulus has stoked demand, according to the minute of their July 7 meeting. They also hinted that the economy may be stronger than originally anticipated, saying that “recent information on the domestic economy suggested that economic activity was not as weak as had been expected.” As such, the bank decided to leave their main policy rate unchanged at 3.0% for fear that lowering it might over-accelerate the process of recovery and possibly stoke inflationary pressures.