RBA Leaves Cash Rate Unchanged At 4.5%

The Reserve Bank of Australia on Tuesday decided to leave the cash rate unchanged at 4.5%, in line with expectations.

The central bank broadly retained its economic assessment, saying the Australian economy had been growing at around trend pace, boosted by commodity exports and strong investment.

With regards to inflation, the bank said the headling CPI will likely remain just above the 3% target ceiling through mid-2011 due to the impact of tobacco tax changes.

"The current setting of monetary policy is resulting in interest rates to borrowers around their average levels of the past decade," RBA Governor Glenn Stevens said in a statement. "With growth in the near-term likely to be close to trend, inflation close to target and with the global outlook remaining somewhat uncertain, the board judged this setting of monetary policy to be appropriate for the time being." (Provided by RTTNews)