No rate rise until late 2011

The Reserve Bank said a mildly restrictive stance for monetary policy remained appropriate in March "Interest rates on loans were slightly above average, a level reached after the monetary policy decision taken in November 2010. Members judged that this mildly restrictive stance of policy continued to be appropriate," the Reserve Bank of Australia said in minutes of its March 1 policy meeting.

The RBA left its cash rate target on hold at 4.75 per cent at the meeting. The commentary suggests the RBA is in no hurry to raise interest rates. Financial markets are now pricing in little risk of an interest rate increase in 2011, and most economists say any hike will be in the second half of the year.

Source: The Australian