RBA holds cash rate at record low 0.75%

The Reserve Bank of Australia has held the cash rate at a record low 0.75 per cent, as widely expected by economists.

The decision will allow Christmas and New Year spending activity to filter through before the central bank’s board considers the possibility of a cut to 0.5 per cent at its next meeting in February.

Some economists had identified a case for a fourth cut in seven meetings on Tuesday as weak consumer spending and stagnant wages growth continues to keep a lid on business investment, jobs numbers, and inflation.

AAP