Investing.com - The Reserve Bank of Australia board judged it was prudent to leave the cash rate unchanged at the February meeting and keep thyem that was for some time if the economy evolved as expected, according to minutes released on Tuesday.
The "most prudent course would likely be a period of stability in interest rates," according to the minutes of the meeting in which the central bank kept the cash rate at a record low 2.5%.
There was no mention of a timeframe in the minutes, but the RBA noted some concern about fourth quarter inflation. that presented "something of a puzzle in interpreting the mix of activity and price data."
The RBA has a mandate to keep underlying inflation within a band of 2% to 3% and fourth quarter data showed a gain above the mid-point to 2.6%.
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