RBA leaves rates on hold at 2.5 per cent

The RBA has left interest rates on hold at 2.5 per cent in March, in a move that was widely expected by markets.

RBA keeps interest rates on hold

The RBA has left interest rates on hold at 2.5 per cent in line with market expectations

A survey of 13 economists showed all expected rates to stay on hold following the statement by Glenn Stevens at the February board meeting, where he said he was not inclined to cut rates from their record low.

"On present indications, the most prudent course is likely to be a period of stability in interest rates," he said.

RP Data national research director Tim Lawless said from a housing perspective strong conditions have driven investment in the market which is healthy for the economy.

"More housing market activity has translated to greater developer confidence and a consistent upwards trend in new building approvals.

"RP Data’s February results showed flat capital city dwelling values which will probably reassure policy makers such as the RBA that the unsustainably high rate of capital gain that has been evident since June last year may be winding down," he said.

More to come.