RBA leaves rates unchanged

[Jovial Monk]

Apparently inflation rising again due petrol prices edging up and dollar falling.

Also, the good retail figures.

Also, dropping interest rates below 3.25% means effectively negative interest rates.

[Rainbow Moonlight]

Also, leaves them more room to move later and lets them see how things are shaping. I am not sure about this decision. I think my inclination is to accept it at face value and not to think it means that they will not cut again later. I agree with you that inflation was probably the major factor that had them hold it still. But if Rudd and Swan had not been planning all this stimulus spending then I think the Reserve bank would not have seen holding the rate steady as as valid an option.

[Jovial Monk]

The other thing is that as the cash rates goes much below 2% monetary policy is ineffective--RBA maybe hoarding ammo for one last big salvo?