RBA keeps cash rate on hold

The Reserve Bank kept the cash rate on hold at 3.0 per cent at its April board meeting. Source: AAP

HOME owners will continue to enjoy the benefits of low interest rates, with the Reserve Bank of Australia opting to keep the cash rate on hold in April.

The RBA held the cash rate at three per cent, equal to its lowest level on record, at its monthly board meeting on Tuesday.

It has kept the rate on hold in 2013 after cutting by 1.25 percentage points between May and December last year.

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 in a statement accompanying the decision.

Mr Stevens said the risks to the global economy appeared to have eased in recent months while commodity prices, a key driver of the Australian economy, remained high by historical standards.

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