5 Oct 2011

Rate held by RBA

7:00 am on 5 October 2011

The Reserve Bank of Australia kept interest rates on hold for the 11th consecutive month on Tuesday.

In a widely predicted decision, the RBA kept the official cash rate steady at 4.75%, where it was set last November.

The RBA indicated last month that it needed to gauge how the dark global economic outlook would affect inflationary pressures at home.

The ABC reports the decision gives the bank more time to assess how the domestic economy is holding up.

The Australian dollar fell to a fresh low of 94.76 US cents after the decision.

RBA Governor Glenn Stevens says the board made the decision in light of the "very unsettled" nature of the global markets.