The Reserve Bank of Australia has kept the official cash rate on hold at 2 per cent for the month of December.
The RBA's decision to keep interest rates on hold is in line with the expectations of the market.
QIC chief economist Matthew Peter said that having failed to cut interest rates in November, the RBA will "sit and wait" for global and domestic developments.
"A February rate cut is still an option if global conditions deteriorate (especially if the Fed delays lift off)," Mr Peter said.
The ANU Centre for Applied Macroeconomic Analysis RBA Shadow Board ascribed a 67 per cent probability to 2 per cent being the 'appropriate policy setting".
"Headline inflation, at 1.5 per cent (year-on-year) below the RBA’s target band of 2-3 per cent, remains well contained and GDP growth, at 2 per cent annualised, soft," said the Shadow Board statement.
"The CAMA RBA Shadow Board on balance prefers to keep the cash rate on hold, attaching a 67 per cent probability to this being the appropriate policy setting.
"The confidence attached to a required rate cut equals 22 per cent, down four percentage points from the previous month, while the confidence in a required rate hike has risen slightly to 11 per cent," said the statement.
The major bank has announced additional charges of $525 million after tax in connection with increased provisions for its customer-related r...
The Commonwealth Bank has advised that it will begin a reimbursement process to current and former staff for lost wages from next week. ...
The major banks have seen their reputations significantly downgraded in an annual perception survey, with AMP placing last out of 60 Austral...