Interest rates remain on hold
Despite economists expecting the Reserve Bank of Australia (RBA) would slash the official cash rate at yesterday's (November 6) meeting, interest rates remain at 3.25 per cent.
The RBA's decision to keep interest rates on hold is the first Melbourne Cup day in six years that the bank hasn't delivered mortgage relief.
An improved global forecast, an increase in inflation rates and the introduction of the carbon tax were cited as reasons of the unchanged rate, RBA governor Glenn Stevens said in a statement.
"At today's meeting, with prices data slightly higher than expected and recent information on the world economy slightly more positive, the board judged that the stance of monetary policy was appropriate for the time being," Mr Stevens explained.
While residential property owners may be disappointed by the move to keep rates steady, experts predict the bank still has one more cut up its sleeve in the near future.
National Australia Bank chief economist Alan Oster said the RBA's decision indicated increasing optimism about the Australian economy.
"My initial reaction is that the RBA is going to sit and wait for a little while. I still think they have one more cut to come," Mr Oster told Fairfax Media.