RBA ‘Plays Safe’ in Holding Rates
The Reserve Bank of Australia is considered to have played it safe by keeping its official cash rate at 3.25 percent.
RBA governor Glenn Stevens said that with inflation figures slightly higher than expected and a slightly more positive outlook for the world economy “the Board judged that the stance of monetary policy was appropriate for the time being."
Macquarie senior economist Brian Redican said the RBA appeared to be taking a more positive view of how Australia's economy was going. "They're definitely back to the 'glass is half full' view of things," he said.
In what was somewhat of a surprise to most economists – and will be a disappointment to those with a mortgage – the RBA Governor’s statement didn't give a strong impression a rate cut was imminent. Following a 0.25 basis points cut in October, a further rate cut had been widely tipped to be on the cards before Christmas.