RBA decides against further rate cuts

The Reserve Bank of Australia (RBA) has opted not to reduce the national cash rate from its current level of 3.25 per cent.

Economists had expected the central bank's board to sanction another reduction when they met on November 6th – adding to the 25-point readjustment in October.

However, RBA governor Glenn Stevens has released a statement in which he revealed that with the outlook for the global economy being slightly more positive of late, the board felt the current rate was "appropriate".

This will obviously come as a blow to mortgage and personal loan customers across the country, but will be a relief to those who have term deposits and savings accounts.

The national cash rate has fallen by 150 points in the last year, but experts in the housing sector are adamant that further cuts are needed to encourage people to get a foot on to the property ladder.

Mr Stevens did not rule out the possibility of further adjustments in the near future and insisted the bank would monitor the situation closely.

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