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RBA leaves rates steady
Released 7 February 2012

The Reserve Bank of Australia has left interest rates steady at 4.25 per cent at its first meeting of the year.     

Despite strong speculation from economists, the central bank chose not to cut rates for a third consecutive time.

REINSW Chief Executive Officer Tim McKibbin said he was surprised by the decision.

“The general consensus was that the RBA would cut rates at least 25 basis points and some even suggested a larger drop.

“I believe a rate cut would have helped to stimulate housing and the economy generally, and I think it is still likely the central bank will cut rates this year.”

The RBA cut interest rates 25 basis points at both its meetings in November and December 2011 after leaving them unchanged for 12 months. The board did not meet in January.