RBA leaves cash rate at 4.75 per cent

The Reserve Bank of Australia (RBA) has opted to leave the cash rate at 4.75 per cent for another month, marking the seventh month in which there has been no change.

Despite forecasts in May by a number of other financial institutions that interest rates would be increased, the board decided not to make any changes.

It observed that commodity prices still remain at relatively high levels and that the slower pace of employment growth is likely to continue.

A statement released by the central bank said: "The board judged that the current mildly restrictive stance of monetary policy remained appropriate."

The bank noted that the global economy is expanding and that financial conditions are still "accommodative".

However, it observed that there is still an element of volatility in the financial market, caused in part by the banking and sovereign debt problems in Europe.

November 2010 was the last month in which the RBA opted to raise the cash rate, pushing interest rates up by 25 basis points to their current level.

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