RBA leaves interest rates unchanged

As was widely expected, the Reserve Bank of Australia (RBA) has left its key interest rate on hold as it waits for clearer signs that the global economy will strengthen.

The RBA cut interest rates four times between November and June as the Australian economy slowed amid concerns surrounding the overall growth of global finances.

Since the RBA began cutting rates again, financial institutions have passed a full percentage point in cuts to home loan borrowers.

For typical households on a mortgage of $300,000 over 25 years, this reduction means a saving of around $196 each month.

The decision to keep the rates as they were come as no shock as a number of economic experts quizzed by the Australian Associated Press earlier this month said levels would remain the same.

Accompanying the announcement, RBA governor Glenn Stevens said: "Financial markets have responded positively to signs of progress, but Europe will remain a potential source of adverse shocks for some time."

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