RBA keeps interest rate at 2.5% for 16th month

MORTGAGE holders will not be facing interest rate rises any time soon, after the Reserve Bank again left the cash rate on hold at 2.5% on Tuesday.

At its final meeting for the year, the RBA board reported most data remained consistent with expected moderate economic growth.

While Governor Glenn Stevens noted resource sector investment was stating to decline "significantly", other sectors started to expand.

Mr Stevens wrote the bank continued to see economic growth to be subdued for the next "several quarters", indicating a rate increase was unlikely when the board next meets in February.

The Housing Industry Association said the hold decision showed Australia may be entering its longest period of stable interest rates in history.

HIA economist Harley Dale said given the outlook, rates stability was more likely to be interrupted by a fall, not a rise, despite no signals towards any change from the board.

Topics:  business finance interest rates money

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