Reserve Bank Of Australia Holds Key Rate Unexpectedly

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The Reserve Bank of Australia (RBA) on Tuesday maintaned the overnight cash rate, its key interest rate, at 3.75%.

The decision was not anticipated, with markets widely expecting a fourth successive 25 basis points hike.

RBA Governor Glenn Stevens said the central bank took a waiting stance, with banks across the country choosing to raise interest rates more than the central bank's benchmark rate.

"Lenders have generally raised rates a little more than the cash rate over recent months and most loan rates have risen by close to a percentage point. Since information about the early impact of those changes is still limited, the board judged it appropriate to hold a steady setting of monetary policy for the time being," he said in a statement.

The RBA Board retained its assessment of the economic outlook, with growth predicted to be close to trend in 2010 and inflation close to target.

The Reserve Bank of Australia (RBA) on Tuesday maintaned the overnight cash rate, its key interest rate, at 3.75%. (Market News Provided by RTTNews)