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RBA leaves interest rates unchanged

In it’s board meeting, the RBA decided to leave interest rates unchanged as widely predicted by analysts.

Official interest rates are at a 49 year low of three percent, with the RBA cutting 425 basis points from interest rates since September in an effort to stem to effects of the recession.

In a statement, RBA Governor Glenn Stevens said market and mortgage rates are already at very low levels and business loan rates are below average, which has already reduced debt burdens considerably.

He pointed to signs of stabilisation in several countries, including China, off the back of stimulus measures, which should help “contain the downturn and support an eventual recovery.”

Stevens said that the board will “monitor how economic and financial conditions unfold, and how they impinge on prospects for a sustainable recovery in economic activity,” in the next couple of months and will decide whether the rates will need to be lowered.