RBA holds interest rates at 4.75 per cent

By Mozo ·

The Reserve Bank of Australia (RBA) has announced that for the eighth consecutive month, it will leave the cash rate at 4.75 per cent.

At the meeting of the board, it was decided that the "current mildly restrictive stance of monetary policy remained appropriate".

In his statement on the monetary policy decision, governor of the RBA Glenn Stevens suggested that employment growth may slow in the coming months.

He noted that there is still uncertainty in the financial markets, which he partly attributed to the banking and sovereign debt problems in Europe.

Despite this, he observed that the country's terms of trade are currently high and that national income has continued to grow strongly.

However, Mr Stevens noted that increasingly cautious Aussie households and the high exchange rate are having a "noticeable dampening effect".

The cash rate reached its highest point in over 15 years in March 2008 when it rose to 7.25 per cent.  ADNFCR-1761-ID-800611867-ADNFCR