The Reserve Bank of Australia (RBA) surprised markets on February 7 after it announced it would leave interests rates on hold.
The RBA's policy board has cut interest rates by 25 basis points at its last two meetings. However, this time, the policy board voted to leave its benchmark cash rate unchanged at 4.25% instead.
The central bank had loosened monetary policy in the past as a precaution to downside risks stemming from the eurozone sovereign debt crisis. It said that although information av