RBA keeps interest rates on hold

By Terry Ryder, 2nd February 2010

The Reserve Bank of Australia decided today to keep the official interest rate on hold.

It has left the official cash rate at 3.75%, defying economists’ forecasts of a fourth consecutive rise of 25 basis points.

RBA governor Glenn Stevens has indicated that today’s decision was caused by the lack of clear information on the impact of previous rises and the decision by major lenders to lift their rates more than the RBA.

Reports are coming in of shock and amazement by economists who predicted a rate rise as a near certainty – although you would think they would be accustomed by now to getting their predictions wrong.

ENDS