RBA Holds Its Policy Nerve on Rates

The Reserve Bank of Australia (RBA) has decided to keep the cash rate unchanged at a record low of 2%, aligning with predictions from 27 surveyed economists. The statement accompanying the decision indicates that low inflation provides the RBA with the flexibility to ease monetary policy if necessary. Market reactions included a slight strengthening of the dollar following China's rate cut. Looking ahead, while no changes are expected in April, predictions for the third quarter vary, with some economists forecasting a rate rise to 2.25% and others a cut to 1.75%. The RBA's future moves remain uncertain.

What factors are influencing the Reserve Bank's decision to hold the cash rate?

What is the significance of low inflation in the context of the Reserve Bank's monetary policy?

How did the dollar react to the Reserve Bank's decision to hold the cash rate?

What did the economists predict regarding the cash rate in the upcoming months?

What is the current cash rate set by the Reserve Bank of Australia?