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Homeowners breath easy

By Tricia Cruz

Homeowners can breathe easy for another month after the Reserve Bank left interest rates unchanged at 3 per cent at its monthly board meeting.

 Most economists had expected the central bank to keep the cash rate steady.

The RBA cut the cash rate four times between May and December in 2012, reducing the rate by 1.25 percentage points.

RBA governor Glenn Stevens said with economic growth expected to be a little below trend over the coming year, it was prudent not to change the cash rate.

However the central bank has room to cut if economic conditions deteriorate.

“The inflation outlook, as assessed at present, would afford scope to ease policy further, should that be necessary to support demand,” he said.  Read more

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