The Reserve Bank of Australia has left the official cash rate on hold for the 11th consecutive month.
According to a statement by RBA governor Glenn Stevens, continued problems abroad had forced the Board to keep the cash rate on hold at 4.75 per cent.
The Board has not moved the cash rate since November 2010.
Speaking at the Board meeting, governor Glenn Stevens while temporary impediments that had contributed to a slowing in growth in some countries over recent months are lessening, recent data suggest a continuing period of soft economic conditions in both Europe and the United States.
"Moreover, the uncertainty and financial volatility have reduced confidence, which could result in more cautious behaviour by firms and households in major countries," he said.
As such, the Board took the view that the current cash rate remained appropriate.
The news comes as no surprise to economists, with a majority now expecting the RBA to keep rates on hold until 2012.
This information is provided by DPN Pty Ltd ABN: 94 630 700 186 Australian Credit Licence 514759. DPN Finance Pty Ltd is an authorised credit representative 504129 and related entity of DPN. Credit for Dream Big 100% Offset and Work Smart 100% Offset is provided by Adelaide Bank a division of Bendigo and Adelaide Bank Ltd, ABN 11 068 049 178 and Australian Credit Licence 237879. Casa Capace Operations Pty Ltd, NDIS provider number 4050038018 trading as Casa Capace.