No need to move on interest rates - Shadow RBA »

The Reserve Bank of Australia (RBA) had no need to move official interest rates in March, with an uncertain global outlook and a modest outlook for Australia's economy, The Australian National University (ANU) RBA Shadow Board has found. The RBA Board lowered the official cash rate from 2.25 per cent to 2.0 per cent in May 2015 and will meet on Tuesday to review interest-rate settings. RBA Shadow Board chair Dr Timo Henckel said markets have bounced back from the turmoil at the start of the year, and holding interest rates steady in Australia remained the best policy. "After last month's rout, global stock markets bounced back but financial markets remain edgy. Australia's unemployment rate rose to six per cent and inflation, at 1.7 per cent, remains below the RBA's target band of two three per cent," Dr Henckel said. "Overall, the outlook for the Australian economy is modest. The RBA Shadow Board continues to have a strong preference for keeping the cash rate on hold, attaching a 68 per cent probability to this being the appropriate policy setting.