Reserve Bank announces monthly rate decision

Amidst speculation that further rate cuts are expected in 2016, the Reserve Bank of Australia has today announced the result of its monthly board meeting.

As predicted by the bulk of Australia’s prominent economists, the RBA has today left rates on hold at 1.75 per cent.

Domain’s chief economist Andrew Wilson said the RBA is likely taking a 'wait and see' approach after last month’s cut, with data remaining mixed.

"Inflation remains critical but bias remains solid for another cut this year, although a near-term rise in US rates may stay the RBA hand," he said.

Similarly, AMP Capital’s chief economist Shane Oliver said that while he expects the RBA to cut the cash rate again this year, not enough has happened in the past month to bring on another move today.

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