Rates on target, says RBA

by Ben Abbott07 Feb 2012

The Reserve Bank has cut against economists' predictions today by leaving the cash rate untouched.

Signs of a strengthening job market added last minute fuel to a decision by the Reserve Bank of Australia to keep the cash rate unchanged at 4.25% today.

Despite the sovereign debt crisis in Europe which led many economists to predict an RBA cut of 0.25% at its board meeting today, the central bank decided the strong fundamentals of the Australian economy and on-target inflation meant no more stimulus was currently required.

The ANZ Job Ad series, released this morning, showed the largest rise in job advertising in nearly a year, increasing the case for a rate hold as concerns over a rising unemployment rate were alleviated.