RBA maintains current cash rate

The Reserve Bank of Australia (RBA) has decided against any further interest rate cuts for the time being.

Board members meet at the start of each month to discuss fiscal policy and the last two gatherings had resulted in a lower cash rate.

However, the RBA feels the current national rate of 3.5 per cent will suffice for now.

This is great news for people who have savings accounts and term deposits, but is not so good for mortgage holders and business loan customers.

In a statement, RBA governor Glenn Stevens suggested the Australian economy grew faster than expected in the early stages of 2012 and inflation levels are pretty much as the organisation expected.

"The board judged that with inflation expected to be consistent with the target and growth close to trend… the stance of monetary policy remained appropriate," he stated.

Despite this, chief economist at AMP Shane Oliver told the Herald Sun that he expects interest rates to fall again by the turn of the year.

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