Today as expected the Reserve Bank of Australia has left interest rates unchanged at 7.25 per cent.
The cash rate is at a 12 year high and was certainly expected to stay that way with 19 economists surveyed by AAP expecting the RBA to leave the cash rate steady.
The Reserve Bank has not cut rates since December 2001 and the Banks Governor Stevens indicated in a statement that while the board felt it was appropriate to keep rates steady this month, relief could be in sight.
The RBA raised its cash rate four times between August last year and March to curb price pressures this certainly seems to of worked from the latest retail spending figures which showed the lowest in six years clearly showing that the economy is slowing.