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Cash Rate on Hold - February 2011

The Reserve Bank of Australia has decided to keep the official cash rate on hold at 4.75 per cent.

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A raft of less negative economic data had analysts widely predicting that the RBA would keep rates on hold when it met for the first time in 2011.

RP Data’s research analyst Cameron Kusher said while inflation remains a concern for the Board, its November rate hike had done enough to dampen any immediate inflationary threats.

In fact, according to Mr Kusher, the RBA will more than likely keep rates stationary for the next few months, giving the country time to recover from the recent spate of natural disasters.

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