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Australia's central bank keeps rates on hold at 6 percent

Australia's central bank keeps rates on hold at 6 percent

The policy-setting board of Australia's central bank announced Wednesday that it was leaving official interest rates unchanged at 6 percent.
The decision by the Reserve Bank of Australia was in line with market expectations. The bank last lifted the benchmark cash rate by a quarter of a percentage point in August, and also in May.
"At its meeting on Oct. 3, the Reserve Bank Board decided to leave the cash rate target unchanged at 6 percent," the RBA said in a brief statement posted on its Web site, a standard statement issued when the central bank holds rates steady. It did not provide any further explanation.
Tuesday's monthly board meeting was the first under the new Reserve Bank Governor Glenn Stevens, who last month replaced the retiring Ian Macfarlane, who had held the position for 10 years.
Analysts said the bank's decision was influenced by recent economic data pointing to a slow down in the housing market and a reduction in personal lending.
"Simply, there was no reason for the Reserve Bank to be touching interest rates," CommSec's chief equities economist Craig James told Sky News.
He said the bank was likely to leave rates unchanged until the end of the year.


Updated : 2021-03-01 09:29 GMT+08:00