RBA 'expected to keep cash rate at 4.75 per cent'

The Reserve Bank of Australia (RBA) is likely to keep the cash rate at 4.75 per cent when its board meets on Tuesday (April 5th), it has been claimed.

According to the AAP, "the case for a 'wait and see' stance for monetary policy has rarely been stronger".

The news provider said problems such as the flooding earlier in the year and a slowing in the growth of Australia's gross domestic product will contribute to this decision.

It added that uncertainties in other countries – notably Japan, Libya and some European nations that are facing large debts – will also provide a strong reason not to raise the rate.

However, the AAP suggested that there is a "reasonable argument" that it will be increased "at some stage".

There has not been a change to the cash rate since November 2010, when the RBA decided to raise it 25 basis points to its current level.

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