Australia’s central bank has left interest rates on hold

Australia’s cash rate has been left on hold at the record low level of 0.10 per cent.

The Reserve Bank of Australia met on Tuesday and decided to keep official interest rates on hold for the eight consecutive month.

The central bank slashed the cash rate to 0.10 per cent in November in a bid to support the Australian economy’s recovery from the pandemic.

The RBA has repeatedly said it will not increase the cash rate – the interest charged on unsecured overnight loans between banks – until inflation is sustainably within the two to three per cent target range.

It has continued to insist it’s unlikely to hike rates until at least 2024.