Bank leaves rates on hold

04/04/2007

9:31am ABC News Online The Reserve Bank has left interest rates on hold at 6.25 per cent, despite widespread predictions that they would go up for the first time this year. The decision to hold interest rates comes despite strong retail and housing figures. Analysts had been divided about the chances of a rate rise. Some argued strong recent economic data would push the Reserve Bank into action, but others said it should wait for more indicators. The odds appeared to shorten two weeks ago when Reserve Bank assistant governor Malcolm Edey suggested that the board would look at inflation on a monthly basis. But while the bank hiked rates three times last year in a bid to deal with growing inflationary pressures and a very tight labour market, this month it has left the official rate unchanged.