(4 February 2010 – Australia) Governor Glen Stevens said in a statement, after the monetary policy meeting on Tuesday, that the board kept rates steady to analysis the impact made by banks raising rates above the official December decision.The big four have all said, after the comments, they will continue with their current standard variable home loan rate.
The RBA’s decision to leave the official interest rate unchanged at 3.75 per cent has surprised most economists who had predicted a 25 basis point hike to four percent.
Mr Stevens also said that if economic conditions evolve broadly as expected, the board considers it likely that monetary policy will, over time, need to be adjusted further in order to ensure that inflation remains consistent with the target over the medium term.
Analysts are now warning that a rate rise at next month’s meeting is imminent.