The Reserve Bank of Australia (RBA) has decided to keep Australia’s official cash rate on hold at record low of 2.5 per cent for the seventh straight meeting.
As widely tipped the central bank held its fire with the steady rate call, noting reasonable prospects of a pick-up in global growth this year.
Commenting on today’s decision the RBA highlighted similar points to last month – citing stronger growth in America and a recovery in Europe.
The RBA also believes China's growth in line with policymakers' objectives though it may have slowed a little at the beginning of this year.
Overall the central bank believes financial conditions and monetary policy remain very accommodative and this should provide support to demand and growth.
As a result the RBA claims monetary policy is appropriate and likely to see a period of stability in interest rates.
