insto - Australian financial markets

RBA surprised the market by leaving the cash rate unchanged this afternoon. Cash rate stood at a 49-year low of 3pct in October 2009 and after three 25bpts hikes in October, November and December the cash rate now stands at 3.75 per cent.

“If economic conditions evolve broadly as expected, the Board considers it likely that monetary policy will, over time, need to be adjusted further in order to ensure that inflation remains consistent with the target over the medium term,” said Glenn Stevens, governor in his monetary policy decision.