Rates on hold at RBA's February meeting

As widely predicted by the country's economists, the Reserve Bank of Australia has kept the official cash rate unchanged at 3.0 per cent.

In its monetary policy statement released after the 5 February meeting, the RBA Governor, Glenn Stevens, noted that while the global picture for growth remains sluggish, "the downside risks appear to have abated, for the moment at least".

Domestically, Mr Stevens reflected on data showing that growth was close to trend in 2012 and that inflation is sitting within the RBA's two-to-three per cent target range. The outlook on inflation for the next two years is also consistent with the bank's target.

Findings from D&B's latest Business Expectations Survey suggest that the effects of previous rate cuts are yet to flow through to the economy and stimulate growth, a thought echoed in the RBA's statement.

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