Cut ruled out

THE Reserve Bank of Australia ruled out a sudden interest rate cut, despite the US easing in response to the dramatic terrorist attacks.

The RBA cut rates two weeks ago, taking the official cash rate to 4.75 per cent from 5 per cent.

RBA Govenor Ian Macfarlance said a change in rates was unwarranted at this stage, even though US rates were cut on Monday night by 50 basis points to 3 per cent, just before the markets reopened for the first time after last week’s terror attacks.

“We have not seen, in the past week, anything relating to Australian monetary policy’s field of operation which was so urgent that it warranted the suspension of the normal timetable of the deliberative processes of our board,” Mr Macfarlane was reported to have said.

The bank normally opts for make announcement after its board meets on the first Tuesday each month.

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