Follwing two consecutive rate cuts at both the December and January board meetings, RBA have decided to hold the cash rate at 4.25%.
Whilst the economic conditions in Europe were weakening at the time of the rate cuts, the acute financial pressures on banks in Europe were alleviated considerably late in 2011 by the actions of policymakers. In 2012 share markets have risen and and the Australian economy continues to grow close to trend, leading the Board to judge that the monetary policy is appropriate for the moment.
The Board will continue to monitor information on economic and financial conditions and adjust the cash rate as necessary to foster sustainable growth and low inflation.