The Reserve Bank of Australia (RBA) has met analyst expectations and kept the nation’s official interest rate steady at 3 per cent at its first board meeting of this year.
The decision comes after 1.75 percentage points have been cut from the cash rate since November 2011.
RBA Governor Glenn Stevens says today’s decision to keep rates on hold came as the downside risk to global growth appears to have abated for the moment.
Governor Stevens pointed to easing financial strains in the US and Europe, stabilising growth in China, improving sentiment and firming commodity prices.
Governor Stevens says when the board took into account the flow of recent information and recent substantial easing of policy it was now prudent to leave the cash rate unchanged.
