Tuesday May 6, 02:30 PM

Reserve Bank leaves interest rates on hold

By Yahoo!7 News The Reserve Bank of Australia (RBA) has left its official cash interest rate unchanged at a 12-year high of 7.25 per cent, in line with most economists' predictions.

The bank is widely believed to be waiting to see how the economy responds to recent rate hikes, despite a bigger than expected rise in the Consumer Price Index (CPI) to 4.2 per cent in the year to March.

The RBA has lifted interest rates four times since August 2007.