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RBA leaves interest rates on hold
Released 6 September 2011

Home owners were again given an interest rate reprieve with the Reserve Bank of Australia (RBA) deciding to leave interest rates steady at 4.75 per cent. 

Reserve Bank Governor Glenn Stevens said in a statement the Board judged that it was prudent to maintain the current stance of monetary policy, however he indicated the Board will continue to assess carefully the evolving outlook for growth and inflation.

“Year-ended CPI inflation should start to decline towards the end of the year, as temporary weather-related effects reverse. But measures of underlying inflation have been increasing this year, after declining for the previous two years.

“While they have, to date, remained consistent with the 2–3 per cent target on a year-ended basis, the Board remains concerned about the medium-term outlook for inflation. A key question will be the extent to which softer global and domestic growth will work, in due course, to contain inflation.”

Interest rates have remained on hold since November 2010, when the RBA made the decision on Melbourne Cup day to lift rates 25 basis points.