The Reserve Bank of Australia (RBA) has chosen to put off a cut in interest rates by another month, keeping borrowing costs steady at a record low of 2.25 percent on Tuesday.
Markets had priced in an 80 percent chance of a cut, but analysts were largely divided over whether it would come in April or May. Market watchers who tipped no move in April said the RBA would likely wait on more information around Sydney’s red-hot property market, as well as the latest employment and inflation data which are due later this month.
Others who calling for a cut Tuesday cited the value of the Aussie dollar, which still appears high when compared with plummeting iron ore prices, which fell below $50 metric ton last week for the first time in 10 years.
You can read the Statement by Glenn Stevens, Governor: Monetary Policy Decision