Interest rates left on hold
With official interest rates already at record lows and the full effect of previous cuts yet to flow through the economy, the Reserve Bank has decided to hold the official cash rate steady at three per cent in its meeting today.
Although Australians have become accustomed to constant interest rate cuts, mortgage holders hoping the official cash rate would drop below three per cent are going to have wait just that little bit longer.
Experts had predicted the RBA would not move today, with a survey of 15 economists showing that all but one had expected the bank to keep official interest rates steady.
The biggest changes since the RBA's last meeting in December have been in markets, with the ASX 200 growing some 10 per cent in the past two months, while iron ore prices have rebounded some 35 per cent.
"The numbers out of China have been very positive and even US numbers have been very supportive of the Reserve Bank leaving rates on hold," said CommSec economist Savanth Sebastian.
"It seems likely that they'll keep rates on hold for the first six months of this year."
