RBA sits tight again

by Adam Smith03 Apr 2012

The Reserve Bank met expectations today, deciding to leave the official cash rate untouched.

In spite of data showing inflation tracking at 1.8%, its lowest level in more than two years, the Central Bank said the current monetary policy setting was appropriate. RBA governor Glenn Stevens reiterated the Bank's stance that it had scope to move if conditions weakened materially.

The RBA conceded that Australia's pace of output was lower than expected, but said it would wait to see upcoming "key data on prices" before making further cuts to rates.