Property blamed for rates decision
Economists say the Reserve Bank's decision to hold off on cutting interest rates was due to concerns about the domestic residential property market as well as a view that the economy is still strong enough not to warrant a rate cut. But they believe the RBA will cut the cash rate from the current 4.75 per cent later in 2003. Bank economists all said a rate cut is still on the agenda. The Australian dollar surged to a high of US 67.97 cents on the decision to keep rates steady. It's the 13th consecutive month that rates have been kept on hold.